For part (a) use the graphical approach shown in class to compare the alternatives over the suggested range of i. Then answer Part (b) based on the graphs.

8- Andrews Manufacturing offers three models for one of its products to its customers. You have been asked to analyze the choices from the customer's perspective. Which model should a customer choose if each model has 19 a life of 12 years? Doing nothing is an alternative. Alternative Deluxe Regular Economy First cost $220,000 $125,000 $75,000 Annual benefit 79,000 43,000 28.000 Maintenance and operating costs 38.000 13,000 8,000 Salvage value 16.000 6.900 3.000 (a) Construct a choice table for interest rates from 0% to 100% (6) MARR = 15%. Using incremental rate of return analysis, which alternative, if any, should the customer choose? 8- Andrews Manufacturing offers three models for one of its products to its customers. You have been asked to analyze the choices from the customer's perspective. Which model should a customer choose if each model has 19 a life of 12 years? Doing nothing is an alternative. Alternative Deluxe Regular Economy First cost $220,000 $125,000 $75,000 Annual benefit 79,000 43,000 28.000 Maintenance and operating costs 38.000 13,000 8,000 Salvage value 16.000 6.900 3.000 (a) Construct a choice table for interest rates from 0% to 100% (6) MARR = 15%. Using incremental rate of return analysis, which alternative, if any, should the customer choose