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If in examining an incremental analysis of a loan you see that the interest rate is 16% and your MARR is 5%, you should take out the loan because the interest rate being larger than the MARR shows that it's a good use of the money True False In order to keep your production line workers safe, you take out a loan to install light curtains on all your machinery to guard the point of operation. This costs $19,524 and you have to pay it back in annual installments of $3947 over 6 years. What do you evaluate your interest rate to be? A 6.06% 3.7.32% 0.422 0.5,81% Questur If you have the information below and an MARR of 4%, which option do you choose? Year Option 1 Option 2 Purchase at $16,611 Purchase at $17,788 Earn $17,233 Earn $18,588 A. Choose neither option because both are below the MARR B. Choose neither because there isn't enough information to formulate a choice. C. Choose Option 2 because it has an IRR higher than the MARR D. Choose Option 1 because it has an IRR higher than the MARR L. A Moving to another question will save this response. Question 7 For the table below, you are evaluating loans. Year Option 1 Option 2 O Purchase at $16,611 Purchase at $17,788 Earn $17,233 Earn $18,588 True False Question 6 Please interpolate the IRR if you have one option at 7.5% with a present worth of -$9111 and another option at 9% with a present worth of $316 A. 9.21% B.8.03% C.8.95% D.7.15%

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