After receiving a fine from the EPA, a certain company has decided to invest in a new incinerator to meet air quality standards. Several options were considered, but only three meet the parameters for compounding and enforcement. Incinerators differ in initial cost and annual operation and maintenance costs, useful life, and residual value. The following cost estimates will be used to make the decision. The benefit of either alternative will be EPA penalty savings equal to $ 350,000 / year.

Perform an "After-Tax Analysis" by Rate of Return to select the best alternative, remembering that the investment is mandatory if you want to keep the business operating. All the tables you need to complete the analysis, including the depreciation schedule and the amortization table.

Assume the following for analysis:  The company makes contributions at a tax rate of 36%,  The company evaluates its investments at a MARR of 8%.  The investment would be made with an advance payment of 10% of the cost and the remainder would be financed with a loan at 4.75% annual effective interest.  The asset will be depreciated using the straight line method for its lifetime

a) Find the IRR of alternative 2