Consider the following three alternatives with their cash flow tables. MARR=10%

EOY

Alternative 1

Alternative 2

Alternative 3

0

-35.000

-25.000

-47.000

1

6.500

4.500

8.800

2

8.500

4.500

10.800

3

7.500

4.500

9.800

4

6.000

4.500

8.300

5

7.500

4.500

9.800

6

6.500

4.500

8.800

7

10.500

4.500

12.800

8

6.500

4.500

8.800

IRR

13,32%

8,90%

12,65%

Determine the best alternative by the (incremental) IRR method.