An industry has three machine options available. The cash flow has been estimated below. The company uses a MARR of 19%

1. Should the company consider all three options? Which option should be discarded from further evaluation?
2. What is the incremental IRR of the remaining options?
3. Based on the incremental IRR, which option should the company choose? Why?

Option A Option B Option C Expenses C Benefit C Year First Cost A Expenses A Benefit A Salvage A First Cost B Expenses B Benefit B Salvage B First Cost C Salvage C 0 -$60,000.00 $80,000.00 $85,000.00 1 $10,000.00 $25,000.00 -$50,000.00 $7,500.00 $25,000.00 $69,500 $69,500 2 $10,000.00 $25,000.00 $50,000.00 $7,500.00 $25,000.00 $69,500 3 $10,000.00 $25,000.00 $50,000.00 $25,000.00 $69,500 $7,500.00 $7,500.00 $10,000.00 $25,000.00 $50,000.00 $25,000.00 $69,500 5 -$10,000.00 $25,000.00 $50,000.00 $7,500.00 $25,000.00 $69,500 6 -$10,000.00 $25,000.00 -$50,000.00 $7,500.00 $25,000.00 $69,500 7 -$10,000.00 $25,000.00 -$50,000.00 $7,500.00 $25,000.00 $69,500 8 -$10,000.00 $25,000.00 $50,000.00 $7,500.00 $25,000.00 $69,500 9 -$10,000.00 $25,000.00 $50,000.00 $7,500.00 $25,000.00 $69,500 10 $10,000.00 $25,000.00 -$50,000.00 $7,500.00 $25,000.00 $69,500 11 $10,000.00 $25,000.00 $50,000.00 $7,500.00 $25,000.00 12 $69,500 -$10,000.00 $25,000.00 $50,000.00 $7,500.00 $25,000.00 $69,500 13 -$10,000.00 $25,000.00 -$50,000.00 $7,500.00 $25,000.00 $69,500 14 -$10,000.00 $25,000.00 $50,000.00 $7,500.00 $25,000.00 $69,500 15 $10,000.00 $25,000.00 $6,000.00 $50,000.00 $10,000.00 $7,500.00 $25,000.00 $8,500.00