A software developer is planning to develop, produce and sell new security software. The key parameter values of the three software packages under consideration are provided below. Parameters 1. Initial Cost ($) AC 650,000 KLM 740,000 2. Revenues ($) 350,000 at 450,500 at EOY1 EOY1 increasing by decreasing by $4,000 $5,000 annually annually thereafter thereafter Delta 790,000 450,500 at EOY1 increasing by 1% annually to EOY5 inclusively; $470,000 at EOY6 decreasing annually by $2,000 thereafter. 300,000 at EOY1 increasing by 2% annually thereafter 3. Operating costs ($) 180,000 at 252,000 at EOY1 EOY1 increasing by decreasing by 2% annually 1% annually thereafter thereafter 90,000 100,000 120,000 4. End-of-life salvage value ($) 5. Useful life (years) . 5 5 10 All parameter values are fictitious. EOY = End-of-year Industry standard for backhoes = 4 years MARR = 10% . 17. The incremental B/C ratio between the KLM and the Delta models. 18. 19. AC's Internal Rate of Return (IRR). Delta's Internal Rate of Return (IRR). The incremental Internal Rate of Return (AIRR) between the AC and the Delta models. 20. 21. KLM's External Rate of Return (ERR). 22. Delta's External Rate of Return (ERR). A software developer is planning to develop, produce and sell new security software. The key parameter values of the three software packages under consideration are provided below. Parameters 1. Initial Cost ($) AC 650,000 KLM 740,000 2. Revenues ($) 350,000 at 450,500 at EOY1 EOY1 increasing by decreasing by $4,000 $5,000 annually annually thereafter thereafter Delta 790,000 450,500 at EOY1 increasing by 1% annually to EOY5 inclusively; $470,000 at EOY6 decreasing annually by $2,000 thereafter. 300,000 at EOY1 increasing by 2% annually thereafter 3. Operating costs ($) 180,000 at 252,000 at EOY1 EOY1 increasing by decreasing by 2% annually 1% annually thereafter thereafter 90,000 100,000 120,000 4. End-of-life salvage value ($) 5. Useful life (years) . 5 5 10 All parameter values are fictitious. EOY = End-of-year Industry standard for backhoes = 4 years MARR = 10% . 17. The incremental B/C ratio between the KLM and the Delta models. 18. 19. AC's Internal Rate of Return (IRR). Delta's Internal Rate of Return (IRR). The incremental Internal Rate of Return (AIRR) between the AC and the Delta models. 20. 21. KLM's External Rate of Return (ERR). 22. Delta's External Rate of Return (ERR)