Basil Robekins has an idea for a new type of ice cream cone made from candy bars (like Butterfinger, etc.

b) Based on a present worth analysis, find the IRR of Basil’s idea.

Suggestion: The PW will include the first cost and the annual savings.

Answer:                                                                                  < 8 pts>

Reasoning/Work.

c) Would you recommend Basil by the new machine or not?

Answer:                                                                                   < 2 pts>

Reasoning/Work.