Question: 5 . Three alternative designs are being considered for a potential improvement project related to the operation of your engineering department. The prospective net cash

5. Three alternative designs are being considered for a potential improvement project related to the operation of your engineering department. The prospective net cash flows for these alternatives are shown in the following table, and the MARR is 15\% per year. \begin{tabular}{|l|l|l|l|}\hline \multirow{2}{*}{End of Year, k} & \multicolumn{3}{|c|}{Alternative Net Cash Flows}\\\hline & A & B & C \\\hline 0 & -\$200,000 & -\$230,000 & -\$212,500\\\hline 1 & 90,000 & 108,000 & -\$15,000\\\hline 2 & 90,000 & 108,000 & 122,500\\\hline 3 & 90,000 & 108,000 & 122,500\\\hline 4 & 90,000 & 108,000 & 122,500\\\hline 5 & 90,000 & 108,000 & 122,500\\\hline 6 & 90,000 & 108,000 & 122,500\\\hline \end{tabular} Show that the same capital investment decision results from the IRR method and the PW method applied by using the incremental investment analysis procedure.
5 . Three alternative designs are being

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