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A company has to make a choice between two alternatives. Alternative 1 has a cost of $250000, an annual benefit of $2500 and a life of 8 years. Alternative 2 has a $100000 cost , an annual benefit of $1750 and a life of 4 years. What is the IRR of the difference between the two alternatives, i.e. Alt 1 - Alt 2.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91232019

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