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    Capital Budgeting Models

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    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

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    https://brainmass.com/economics/personal-finance-savings/capital-budgeting-models-459866

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    Please refer attached file for better clarity of tables and formulas.

    IRR can be found by using IRR ...

    Solution Summary

    The solution chooses the better project by IRR method.

    $2.19

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