also to calculate incremental rate of return

A car rental company has decided to purchase a brand new car for its car fleet i.e. Do Nothing is not an op The owner of the company believes that as the engine size of a car increases, the net income for the com increases too but he is uncertain whether the incremental expenditure required for the larger engine size is just The estimated cash flows associated with each engine size are provided below. Engine size, cc Initial investment, $ AOC, $ Annual income, $ Salvage value, S 1800 -33,000 -16,000 +26,500 +6,600 1400 -18,000 - 7,000 +14,000 +3,000 1600 -24,000 -11,000 +20,500 +3,500 1300 -14,000 - 5,500 +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 incremental ROR method. Note: Calculating every incremental ROR values during comparisons is a must i.e. 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