An oil company is considering a proposal to automate a plant to reduce the labor costs and increase the efficiency of the producing field. It has an option of completely automating or partially automating the field. The cash flows from both the alternatives are shown below.

Alternative Investment Annual Benefit

Full Automation $4,000,000 $1,150,000

Partial Automation $1,500,000 $500,000

Assume the life of the project to be seven years and salvage value to be zero. If the MROR is 20%, which alternative should be selected? If the MROR is 15%, does the answer change? Use ROR analysis.