?Project Economics, Internal Rate of Return? Comparing options with different ti

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?Project Economics, Internal Rate of Return?

Comparing options with different time periods A/C model A costs $6,000 with annual electricity costs of $900. It is estimated to last for 15 years. A/C model B costs $4,000 with annual electricity costs of $1,200 and last for 10 years. Draw cash flow diagrams for each of the two models. Draw one cash flow diagram that compares one model versus the other. Find the internal rate of return (IRR) for purchasing model A versus model B. Judge if purchasing model A is more preferable from an economic perspective for a typical U.S. homeowner. Justify your answer.

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?Project Economics, Internal Rate of Return? Comparing options with different ti

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