2 pts Question 3 Veritas Inc. has decided to acquire a new Hydraulic Excavator. It has three options. Caterpillar: purchase cost of $347,550 and operating costs of $24,731 per year (paid at the end of each year). John Deere: purchase cost of $283,669 and operating costs of $23,543 per year (paid at the end of each year). Volvo: purchase cost of $304,880 and operating costs of $15,978 per year (paid at the end of each year). Assume that Geek Inc. has a budget of $338,099 for this investment and all excavators have a service life of 14 years. Based on the defender-challenger approach and given that the MARR is 12 %, reinvestment rate is 12%, and minimum external rate of return is 12 %, compute the incremental Benefit-Cost ratio of choosing the best excavator (in economic terms) and then indicate your recommendation as follows: -answer "O" (without the commas) if your recommendation is the Caterpillar;- answer "1" (without the commas) if your recommendation is the John Deere; -write down as your answer the value of the incremental B-C ratio if your recommendation is Volvo. Note: round your answer to two decimal places, and do not include spaces, currency signs, plus or minus signs, nor commas. 2 pts Question 3 Veritas Inc. has decided to acquire a new Hydraulic Excavator. It has three options. Caterpillar: purchase cost of $347,550 and operating costs of $24,731 per year (paid at the end of each year). John Deere: purchase cost of $283,669 and operating costs of $23,543 per year (paid at the end of each year). Volvo: purchase cost of $304,880 and operating costs of $15,978 per year (paid at the end of each year). Assume that Geek Inc. has a budget of $338,099 for this investment and all excavators have a service life of 14 years. Based on the defender-challenger approach and given that the MARR is 12 %, reinvestment rate is 12%, and minimum external rate of return is 12 %, compute the incremental Benefit-Cost ratio of choosing the best excavator (in economic terms) and then indicate your recommendation as follows: -answer "O" (without the commas) if your recommendation is the Caterpillar;- answer "1" (without the commas) if your recommendation is the John Deere; -write down as your answer the value of the incremental B-C ratio if your recommendation is Volvo. Note: round your answer to two decimal places, and do not include spaces, currency signs, plus or minus signs, nor commas