ABC Company has decided to purchase a brand new car for its car fleet (Le. Do Nothing is not an option) The owner of the company believes that as the engine size of a car increases, the net income for the company increases too but she is uncertain whether the incremental expenditure required for the larger engine size is justified. The estimated cash flows associated with each engine size are provided below. Engine size, cc Initial investment, $ AOC. $ 1800 -33,000 -16,000 1400 -18 000 - 7,000 1600 -24,000 -11.000 1300 -14.000 - 5.500 Annual income, $ Salvage value S +26,500 +6,600 +14,000 +3,000 +20,500 +3.500 +10,000 +2,500 The company's MARR is 18% per year, and all cars are expected to have a useful life of 8 years. a) Determine which car should be purchased using mcremental ROR method. Note: Calculating every INC7emental ROR values during comparisons 15 a must (1e you cannot use directly MARR value) b) If two cars are to be purchased what should be the engine size of the second car? Why