A large cash crop company is planning the purchase of an additional harvester. The key parameters of the three harvesters under scrutiny are provided below. Parameters ALPHA BETA GAMMA 1. Initial Cost ($) $330,000 $355,000 $375,000 $225,000 at EOY1 increasing by 2% annually to EOY5 $250,000 at EOY1 inclusively; revenues in EOY5 $260,000 at EOY1 decreasing by 1% subsequently increasing by 1% 2. Revenues ($) annually thereafter increase by 1% annually thereafter annually to EOY10 [EOY6 revenues =$245,983] $140,000 at EOY1 $163,500 at EOY1 $190,000 from 3. Operating Costs increasing by 3% increasing by EOY1 to EOY5; annually thereafter. $500 annually $200,000 from ($) thereafter EOY6 to EOY10. 4. End-of-life salvage 20,000 value ($) $30,000 $0 5. Useful life (years) 5 years 10 years 10 years All parameter values are fictitious. EOY = End-of-year The industry standard for these mixers is 4 years MARR = 10% The incremental B/C ratio between ALPHA and GAMMA is between 1.83 and 2.03 O 2.2 and 2.4 C 0.95 and 1.15 C 0.65 and 0.85 ALPHA's Internal Rate of Return (IRR) is between 16% and 18% C 26% and 28% 12% and 14% O 22% and 24% GAMMA's Internal Rate of Return (IRR) is between C 23% and 25% C 15 and 17% C 11% and 13% 19.5% and 21.5% The incremental Internal Rate of Return (AIRR) between ALPHA and GAMMA is between 10.5% and 12.5% C 7% and 9% 18.7% and 20.7% 14.3% and 16.3%