3-18 Two development alternatives exist to bring a new project into pro- duction. The first development approach would involve equipment and development expenditures of $1.0 million at year 0 and $2.0 million at year 1 to generate incomes of $1.8 million per year and operating expenses of $0.7 million per year starting in year 1 for each of years 1 through 10 when the project is expected to terminate with zero salvage value. The second development approach would involve equipment and development expenditures of $1 million at year 0 and expenses of $0.9 million at year 1 to generate incomes of $2 million per year and oper- ating expenses of $0.9 million per year starting in year 2 for each of years 2 through 10 when the project is expected to terminate with zero salvage value. For a minimum rate of return of 15%, evaluate which of the alternatives is economically better using rate of return, net present value, and present value ratio analysis techniques