4. (25 points) Two plans are being compared using MARR of 10%, with expected lives of 10 years. (a) (15 points) Which alternative is preferred using incremental IRR? Consider do-nothing as an alternative. Initial Cost Annual Maintenance Cost Annual Savings if implemented Salvage value Alternative A ($) 30000 2000 8000 3000 Alternative B ($) 40000 3000 12000 15000 (b) (10 points) Decide which alternative is better using annual cash flow analysis (i = 10%). Use the following values: (A/P, 10%, 10) = .1627; (A/F, 10%, 10) = .0627. 4. (25 points) Two plans are being compared using MARR of 10%, with expected lives of 10 years. (a) (15 points) Which alternative is preferred using incremental IRR? Consider do-nothing as an alternative. Initial Cost Annual Maintenance Cost Annual Savings if implemented Salvage value Alternative A ($) 30000 2000 8000 3000 Alternative B ($) 40000 3000 12000 15000 (b) (10 points) Decide which alternative is better using annual cash flow analysis (i = 10%). Use the following values: (A/P, 10%, 10) = .1627; (A/F, 10%, 10) = .0627