An oil cmpany must install antipollution equipment in a new refinery to meet federal? clean-air standards. Four design alternatives are being? considered, which will have capital investment and annual operating expenses as shown in the table. Assume a useful life of 9 years for each? design, no market? value, a desired MARR of 12?% per? year, and an analysis period of 9 years. Which one? (if any) should be? selected? Solve this problem using the ERR method. Let ?=10?% per year.

	D1	D2	D3	D4
Capital investment	$610,000	$770,000	$1,240,000	$1,650,000
Annual Expenses:
Power	68,000	66,000	125,000	130,000
Labor	45,000	45,000	65,000	45,000
Maintenance	660,000	600,000	420,000	380,000
Taxes and insurance	11,000	14,000	25,000	28,000

Which alternative would you choose as a base? one? Choose the correct answer below.

A. D1

B. D2

C. D3

D. D4

Analyze the difference between the base alternative and the? second-choice alternative.

ERR ?(D?-D?) = ___%

Analyze the difference between the current base alternative and the? third-choice alternative.

ERR ?(D?-D?) = ___%

Analyze the difference between the current base alternative and the? fourth-choice alternative.

ERR ?(D?-D?) = ___%

Which alternative should be? selected? Choose the correct answer below.

A. D1

B. D2

C. D3

D. D4

or none of the above

Thank you in advance for your help, I am so lost!