(a) Rusayl Chemicals LLC is considering to construct a waste recovery plant. The company has invited tenders from different vendors. As a result they have received bids from five vendors. The Initial investment cost, the annual operating costs, the fixed charges per year and the value of waste recovery of each proposal is shown in Table Q3. The company need to perform an alternative investment analysis to select the best proposal. The company has a Mininimum Acceptable Rate of Return (MARR) policy of 12%. Bid Options Proposal Proposal Proposal Proposal Proposal 2 3 4 5 27000 32000 38000 44000 47000 8200 8375 8600 8925 9000 1 Initial Investment (RO) Annual Operating costs (RO) Fixed Charges per year (as percentage of Initial Investment) Value of Waste Recovery per Year (RO) 10% 10% 10% 10% 10% 11000 13500 16000 18500 21000 Table Q3 (i) Evaluate the best proposal using Incremental Return Method. (10 Marks) (ii) Evaluate the best proposal incorporating Minimum Return as a Cost Method. (10 Marks) (a) Rusayl Chemicals LLC is considering to construct a waste recovery plant. The company has invited tenders from different vendors. As a result they have received bids from five vendors. The Initial investment cost, the annual operating costs, the fixed charges per year and the value of waste recovery of each proposal is shown in Table Q3. The company need to perform an alternative investment analysis to select the best proposal. The company has a Mininimum Acceptable Rate of Return (MARR) policy of 12%. Bid Options Proposal Proposal Proposal Proposal Proposal 2 3 4 5 27000 32000 38000 44000 47000 8200 8375 8600 8925 9000 1 Initial Investment (RO) Annual Operating costs (RO) Fixed Charges per year (as percentage of Initial Investment) Value of Waste Recovery per Year (RO) 10% 10% 10% 10% 10% 11000 13500 16000 18500 21000 Table Q3 (i) Evaluate the best proposal using Incremental Return Method. (10 Marks) (ii) Evaluate the best proposal incorporating Minimum Return as a Cost Method. (10 Marks)