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1) (30 p.) Acme Molding is examining five alternatives for a piece of material handling equipment. Each has an expected life of 8 years with

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1) (30 p.) Acme Molding is examining five alternatives for a piece of material handling equipment. Each has an expected life of 8 years with no salvage value, and Acme's MARR is 16%. Using an incremental analysis, which material handling alternative should be chosen? The table below includes initial investment, net annual income, and IRR for each alternative. Alterative B D E Capital investment -S10,000 -$10,600 $14,000 $16,300 $19,000 Net annual income $2,500 $2,600 $2,900 $3,500 $4,800 IRR 18.62% 18.01% 12.83% 13.88% 18.97%

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