Solve step by step.

23. The estimated cash flow for each alternative of mutually exclusives alternative with MARR of 20% are as follows: Use the incremental analysis of IRR method to make a recommendation. Alternatives M1 M2 M3 Initial Cost $42,000 82,000 60,000 Annual Benefit $35,000 40,000 48,000 Annual operating cost $23,000 25,000 32,000 Salvage value $8,000 15,000 16,500 Useful Life Rate of Return 25% 22.50% 23.80% 8 years 8 years 8 years