Problem 3 (30 points) Incremental IRR (%), when compared with alternative Alternative Alternative IRR (%) B 28.9 Initial investment (TL) 25,000 35,000 40,000 60,000 75,000 A D E 19.7 1.5 9.6 15.1 13.4 25.4 20.2 D 36.7 39.8 49.4 E 25.5 24.7 28.0 -0.6 Examples of how to read this table: the IRR of project A is 9.6%, and the IRR of the incremental investment project when project A is compared to project B is 28.9%. 1) [8 points] If the altematives are independent and the MARR is 18%, which alternative(s) should be selected? Explain your answer. 2) (22 points] If the alternatives are mutually exclusive and the MARR is 15% per year, which altemative should be selected? Explain your answer. For each comparison, also show the corresponding figure where you can compare the alternatives (i... a figure with both altematives at the same time). Problem 3 (30 points) Incremental IRR (%), when compared with alternative Alternative Alternative IRR (%) B 28.9 Initial investment (TL) 25,000 35,000 40,000 60,000 75,000 A D E 19.7 1.5 9.6 15.1 13.4 25.4 20.2 D 36.7 39.8 49.4 E 25.5 24.7 28.0 -0.6 Examples of how to read this table: the IRR of project A is 9.6%, and the IRR of the incremental investment project when project A is compared to project B is 28.9%. 1) [8 points] If the altematives are independent and the MARR is 18%, which alternative(s) should be selected? Explain your answer. 2) (22 points] If the alternatives are mutually exclusive and the MARR is 15% per year, which altemative should be selected? Explain your answer. For each comparison, also show the corresponding figure where you can compare the alternatives (i... a figure with both altematives at the same time)