Consider the following two mutually exclusive projects being considered by a firm. The firm's MARR is 10% per year and the service life is 5 years for each. Initial cost Annual revenues Project 1 -$14,300 $4,378 Project 2 -$22,000 $6,501 Present Worth (PW) $2,296 $2,644 a. Based on the PW, the project that is more economical is Project 1. b. Calculate the IRR of each alternative (use the trial-and-error method) The IRR of Project 1 is The IRR of Project 2 is % (Round to the nearest one decimal place) % (Round to the nearest one decimal place) c. Perform the incremental IRR analysis to determine the project that is more economical: The incremental initial cost is $ | The incremental anual reveni using the rial-end-error method, Incremental IRR = % (Calculate to 1 decimal place); Therefore, based on the incremental IRR, the most economical is Project . d. Do the two methods produce the same recomendation for the most economical project? O A. No O B. Yes FIA Discrete Compounding; i = 10% Single Payment Uniform Series Compound Present Compound Sinking Amount Worth Amount Present Fund Factor Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP P/F P/A A/F 1.1000 0.9091 1.0000 0.909090909 1.0000 1.2100 0.8264 2.1000 1.735537190 0.4762 1.3310 0.7513 3.3100 2.486851991 0.3021 1.4641 0.6830 4.6410 3.169865446 0.2155 1.6105 0.6209 6.1051 3.790786769 0.1638 1.7716 0.5645 7.7156 4.355260699 0.1296 1.9487 0.5132 9.4872 4.868418818 0.1054 2.1436 0.4665 11.4359 5.334926198 0.0874 2.3579 0.4241 13.5795 5.759023816 0.0736 2.5937 0.3855 15.9374 6.144567106 0.0627 2.8531 0.3505 18.5312 6.495061005 0.0540 3.1384 0.3186 21.3843 6.813691823 0.0468 3.4523 0.2897 24.5227 7.103356203 0.0408 3.7975 0.2633 27.9750 7.366687457 0.0357 4.1772 0.2394 31.7725 7.606079506 0.0315 Capital Recovery Factor To Find A Given P A/P 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315