PLEASE DO NOT USE EXCEL TO SOLVE. QUESTION IS ASKING FOR EXTERNAL RATE OF RETURN.

06.02-PR016 Three alternatives are being considered by the management of Brawn Engineering to satisfy an OSHA requirement for safety gates in the machine shop. Each of the gates will completely satisfy the requirement so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. Using an external rate of return analysis with a MARR of 20%/yr, determine the preferred gate. End of Year Gate 1 Gate 2 Gate 3 0 -$15,000 -$19,000 -$24,000 1 -$6,500 -$5,600 -$4,000 2 -$6,500 -$5,600 -$4,000 3 -$6,500 -$5,600 -$4,000 4 -$6,500 -$5,600 -$4,000 5 -$6,500 + $0-$5,600 + $2,000 $4,000+ $5,000 5 06.02-PR016 Three alternatives are being considered by the management of Brawn Engineering to satisfy an OSHA requirement for safety gates in the machine shop. Each of the gates will completely satisfy the requirement so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown below. Using an external rate of return analysis with a MARR of 20%/yr, determine the preferred gate. End of Year Gate 1 Gate 2 Gate 3 0 -$15,000 -$19,000 -$24,000 1 -$6,500 -$5,600 -$4,000 2 -$6,500 -$5,600 -$4,000 3 -$6,500 -$5,600 -$4,000 4 -$6,500 -$5,600 -$4,000 5 -$6,500 + $0-$5,600 + $2,000 $4,000+ $5,000 5