A manufacturing firm is considering the mutually exclusive alternatives shown below. Determine which is a better choice at a MARR if 15% based on the IRR criterion.
n Project A1 Project A2
0 $(2,500) $(3,600)
1 $1,600 $2,600
2 $1,840 $2,200
Please refer attached file for better clarity of tables and formulas.
IRR can be found by using IRR ...
The solution chooses the better project by IRR method.