9. A plant engineer is considering the two types of solar water heating system given in the table below. The firm's MARR is 12%. On the basis of the IRR criterion, which system is the better choice? "Do nothing" is not an option. 14 Click the icon to view the relevant data for the projects. The IRR on incremental investment is %. (Round to one decimal place.) Which system is the better choice? Choose the correct answer below. O Project A O Project B 14: More Info Project A Project B Initial cost $8,000 $12,000 Annual savings $900 $1,100 Annual $150 $100 maintenance Expected life 20 years 20 years Salvage value $500 $600
9. A plant engineer is considering the two types of solar water heating system given in the table below. The firm's MARR is 12%. On the basis of the IRR criterion, which system is the better choice? "Do nothing" is not an option. 14 Click the icon to view the relevant data for the projects. The IRR on incremental investment is %. (Round to one decimal place.) Which system is the better choice? Choose the correct answer below. O Project A O Project B 14: More Info Project A Project B Initial cost $8,000 $12,000 Annual savings $900 $1,100 Annual $150 $100 maintenance Expected life 20 years 20 years Salvage value $500 $600
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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