Question Details

Accounting Homework Help

Imagine that you have gotten a job as a financial consultant andare considering purchasing a new power lawn mower. The new mowerwill save you 45 minutes of work per week. This “extra” time can beput toward your job where you make $25/ hour. If you work 50 weeksper year and the lawn mower cost $1,200 should you buy the mowerbased on the IRR approach? Assuming the mower will last 8 years andyou could earn 9% on an alternative investment? Explain yourresponse. What alternative you will choose? Show your calculatorinputs for each decision.