3) Consider the following alternatives in the table presented below. A Cost $40,000 10,000 $50,000 $55,000 Annual Benefit 13,000 14,000 Useful life 5 10 10 Salvage Value a) Use Incremental Rate of Return method for selection of best alternative. (15) b) Draw the cash flow diagram for each alternative. (5) The minimum attractive rate of return (MARR) is 10%. $1000 2500 5750