Problem 1 (30 points). Use incremental analysis to compare the three project options shown below. Solve the problem on paper, and show all of your work. The number of periods is 12 and the MARR is 7%. Option A Option B Option A Initial Cost $500,000 $575,000 $630,000 Annual Benefit $65,000 $82,000 $35,000 $75,000 $40,000 $120,000 Repair Cost at n. 6 Salvage Value at n =12 $40,000 $100,000 $100,000 Use incremental analysis to determine which option (A, B, or C) is best. a. Write a generic equation to solve for NPW of the delta columns. b. For each pairwise comparison, use the head of the column to identify the pair being compared, and then calculate the incremental cash flow and show your results in the column provided above. c Solve for NPW of each delta column using a variety of interest rates. Tabulate your results. Continue solving for NPW until you find the two tabulated interest rates (using the interest tables in the back of your textbook) where one interest rate yields a negative NPW and the next-highest interest rate (on the next page) yields a positive NPW. Based on the results, state the range of interest rates for AIRR. For example, x%