(b) By means of the incremental internal rate of return method, suggest the selection of the mutually exclusive options based on the estimated figures shown in Table 1b. Show the steps. Table 1b Option 1 2 Initial cost ($ thousand) 56 30 Yearly net positive cash flow ($ thousand) Residual value (positive) ($ thousand) Service life (years) 10 2 Discount factors are given in Table 1c for reference. Table 1c Discount rate 14% 16% 18% 20% Year Discount factor 0 1.000 1.000 1.000 1.000 1 0.877 0.862 0.847 0.833 2 0.770 0.743 0.718 0.694 3 0.675 0.641 0.609 0.579 4 0.592 0.552 0.516 0.482 5 0.519 0.476 0.437 0.402 6 0.456 0.335 0.410 0.370 100 35 5 4 [10 marks]