Consider six mutually exclusive and indivisible investment alternatives under evaluation by TranSystems in their bridge and structure design group. At any time TranSystems chooses to exit the investment, their initial financial outlay will be refunded, in addition to the annual returns earned. Based on the data shown below and a MARR of 10 percent, determine the preferred alternative.

a. Which alternative should TranSystems select? Use the IRR method to determine the preferred alternative.

b. Use Excel \(\mathbb{R}\) and SOLVER to select the preferred investment based on PW. State both the PW and IRR.

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Alternative 1 2 3 5 6 Initial Investment $25,000 $35,000 $30,000 $40,000 $60,000 $50,000 Annual Return $2,600 $3,750 $3,050 $4,775 $6,750 $5,850