ABC Company is considering the purchase of a new forklift for its flourishing roofing business. The key parameters of the three forklifts under scrutiny (Alpha, Beta and Gamma) are provided below.

Parameters	Alpha	Beta	Gamma
Initial Cost($)	400,000	500,000	550,000
Revenues ($)	230,000 at EOY1 Decreasing by 1% annually thereafter	300,000 at EOY1 increasing by 1000 annually thereafter	330,000 at EOY1 decreasing by 1500 annually thereafter
Operating Costs ($)	105,000 at EOY1 increasing by 2% annually thereafter	214,000 annually	223,000 at EOY1 increasing by 1000 annually thereafter
End-of life salvage value	-10,000	10,000	25,000
Useful life (years)	5	10	10
Industry Standard = 4 years	MARR = 10%	EOY = End of year

21.i) The incremental External Rate of Return (ERR) between Alpha and Gamma (second decimal; no rounding) is a) 9.40%; b) 9.97%; c) 10.25%; d) 10.62%.

ii) The incremental External Rate of Return (ERR) between Beta and Gamma (second decimal; no rounding) is a) 8.19%; b) 9.30%; c) 9.88%; d) 10.91%.