Problem 8 [18 points] Not for groups of 2 students XYZ development owns the last vacant parcel in a thriving industrial park. There are 3 proposals for developing that property; the corresponding data are shown in the table below: R&D lab First cost $3.0 M Annual O&M costs $750 K Annual income $1,200 K Instrument Maintenance (IM) Surfboard Manufacturing (SM) $3.3 M $4.6 M $200 K $400 K $750 K $1.100 K In each case, XYZ builds and maintain the structure and receives income from it as shown above. XYZ has an annual effective MARR of 7% and uses a time horizon of 20 years for its analysis. Remember to draw cash flow diagrams. A [6 points] Using the present worth method, what is the best alternative? B [6 points] Using the annual worth method, what is the best alternative? C [6 points] Using the internal rate of return method, what is the best alternative?