2. (10pt) A manufacturing firm is evaluating three automated machines. The estimated production rate and cost data for each machine are given below. $50,000 $75,000 20,000 30,000 $5 $2 $3 $20,000 $30,000 $25,000 $50,000 Investment cost Production units (per year) Selling price ($/unit) Variable costs ($/unit) Annual fixed costs Market value Useful life (years) $4 C $60,000 25,000 $4.5 $1.5 $40,000 $25,000 The MARR is 10% per year. Annual revenues are based on the number of units sold and the sell- ing price. Annual expenses are based on fixed and variable costs. Neither depreciation nor tax is considered in this problem. a) (5pt) Determine which selection is preferable by comparing their NPVs. b) (5pt) Determine which selection is preferable by using the IRR Incremental Analysis (use Excel IRR function)