A manufacturer, whose MARR is 7%, is considering two alternative plant layouts, A1 and A2. The first cost represent the expenses of rearranging the current layout to the alternative new layout and the annual savings represent the reduction in the production costs of the new layout compared to the current layout. Using the internal rate of return as the decision criterion, what course of action do you recommend? Year Az First Cost Annual Savings AL $105,000 $10,500 $145,000 $14,500 1 to infinity Select Alt A because its rate of return, 10.00%, is higher than the MARR Select Alt Az because it generates more savings in each year. Select Alt A2 because it is the more expensive option and the incremental rate of return, 10.00%, is higher than the MARR Select Alt A, because its rate of return, 10.00%, is higher than the MARR