2. The three projects (below) have been identified as possible future engineering endeavors, and the Mechanical Engineering lead has computed the Internal Rate of Return for each project and the relevant increments). At a later date, the Engineering Manager will select among the projects when the MARR is known. Perform the incremental analysis and identify the best project if: (A.) the MARR is 10.0%; (B.) the MARR is 10.5%; and (C.) the MARR is 9.5%. Project Data: Project A: Project B: Project C: Incr B-A: Incr C-A: Incr C-B: Lifetime (years): 55 5 5 5 5 1st Costs: $ 75,000 $120,000 $1,500,000 $ 45,000 $ 1,425,000 $1,380,000 Annual Revenues: $ 65,000 $130,000 $1,300,000 $ 65,000 $ 1,235,000 $1,170,000 Annual Expenses: $ 48,000 $102,000 $ 951,000 $ 54,000 $ 903,000 $ 849,000 Salvage Values: $ 20,000 $ 26,000 $ 280,000 $ 6,000 $ 260,000 $ 254,000 RR: 10.9% 10.7% 99% 10.3% 9.9% 9.9% HWK 7 1 OF 1