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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 14%. 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. Alternative A B D E Capital investment -$11,400 -$12,000 $14,200 -$17,000 $19,000 Net annual income $2,500 $2,650 $3,000 $3,700 $4,000 IRR 14.51% 14.72% 13.40% 14.29% 13.30%

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