Question: Hello! Can you show me how to this problem by hand? No Excel please! An organization is considering the purchase of new machines to automatically

Hello! Can you show me how to this problem by hand? No Excel please!

An organization is considering the purchase of new machines to automatically conduct some quality control tasks. The machines are expected to save production cost which is given below as Annual Income. The machines are expected to be part of the production process for 5 years. The company has a minimum attractive rate of return (MARR) of 5.4%. The following data is available for these new machines:

Alternative, Initial Cost, Annual Income, Annual Operation and Maintenance costs, Salvage value

A $26,000 $9,200 $875 $5,500

B $62,000 $17,100 $1,320 $7,900

C $35,000 $13,200 $1,250 $6,700

Using incremental IRR analysis, find the best alternative.

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