12)(Ch9) You will be buying one new piece of equipment for your plant. You have researched three options. Your boss has asked you to make a recommendation based on IRR. This will require you to use Defender/Challenger Analysis incremental analysis). All options have a five-year life and no salvage value. The company uses a MARR of 10%

Option A has the first cost of $11,000 and will generate revenues of $3,200 annually. Option B has a first cost of $16,000 and will generate revenues of $4,500 annually. Option C has a first cost of 19,000 and will generate revenues of $5,500 annually.

Note: This question is from Engineering Economy and Decision Making by Ted G. Eschenbach (3rd edition). ( chapter 9) . (ISBN-13: 9780199772766; ISBN-10: 019977276) . Please use the sample examples from that chapter to solve it.