Use Incremental IRR Analysis with MARR as your decision point

Dark Skies Observatory is considering several options to purchase a deep space telescope. Revenue would be generated from the telescope by sel. ing "time and use" slots to various researchers around the world. Four possible 39. telescopes have been identified in addition to the possibility of not buyi telescope if none are financially attractive. The table below details the charac teristics of each telescope. An internal rate of return analysis is to be performed. T1 T2 T3 T4 Useful Life First Cost Salvage Value Annual Revenue $400,000 $600,000$260,000 $320,000 Annual Expenses $130,000 $270,000 $70,000 $120,000 10 years 10 years10 years 10 years $600,000 $800,000 $470,000 $540,000 $70,000 $130,000$65,000 $200,000 a. Determine the preferred telescope if MARR is 25%/yr. b. Determine the preferred telescope if MARR is 42%/yr