Question 4. (15 points) Given the data below for two alternatives, find the better alternative using incremental IRR analysis, if MARR is 8%. Alt. A Alt. B Initial Cost $12,000 $21,000 Maintenance Cost / Year 1500 1100 Uniform Annual Benefit 4400 7800 Salvage Value 1600 4600 Life 8 Years 6 Years Alternatives are replaced at the end of their lives. Question 5. (20 points) Alfredo Auto Parts is considering investing in a new forming line for grille assemblies. For a five-year study period, the cash flows for two separate designs are shown below. Create a spreadsheet that will calculate the present worths for each project for a variable MARR. Through trial and error, establish the MARR at which the present worths of the two projects are exactly the same. Cash Flows for Grille Assembly Project Automated Line Manual Line Disburse- Net Cash Disburse- Net Cash Year ments Receipts Flow ments Receipts Flow $1 500 000 0 -$1 500 000 $1 000 000 $ 0 - $1 000 000 50 000 300 000 250 000 20 000 200 000 180 000 60 000 300 000 240 000 25 000 200 000 175 000 3 70 000 300 000 230 000 30 000 200 000 170 000 4 80 000 300 000 220 000 35 000 200 000 165 000 90 000 800 000 710 000 40 000 200 000 160 000