Question

For △IRR < MARR choose the lower-cost alternative With a fixed input, we want to maximize the present worth of benefits or other outputs.

Answer 1

When comparing alternatives using IRR and MARR, choose the lower-cost alternative to maximize the present worth of benefits or outputs.

Step-by-step explanation:

When comparing alternatives using the internal rate of return (IRR) and the minimum acceptable rate of return (MARR), the lower-cost alternative should be chosen when IRR is less than MARR.

This is because the goal is to maximize the present worth of benefits or outputs.

By choosing the lower-cost alternative, the present worth of benefits is maximized, resulting in a more efficient use of resources.