1. Determine which will offer the largest internal rate of return for AWS.2. Determine using the internal rates of return with an incremental analysis which will offer the largest monetary benefit to AWS if their MARR is 12%.3. What is the difference between parts a and b?
| Altern- ative |
Investment in year 0 |
Annual Cash Flow |
Salvage value in last year |
| A1 |
$50,000 |
$18,000 |
$0 |
| A2 |
$250,000 |
$85,000 |
$75,000 |
| A3 |
$350,000 |
$110,000 |
$175,000 |
| A4 |
$600,000 |
$150,000 |
$400,000 |
| A5 |
$800,000 |
$175,000 |
$600,000 |