explain in detail in words how we solved this problem for your professor?

Incremetal cash flows ROR method 1. Order the alternatives by iniitla investment, or costs, starting with the smaller one. 2. Develop he cash flows and incremental cash flows. (may need to use least common multiple for this step depending upon projects. For now and this activity we will use equal time period projects) 3. Draw appropraite diagrams 4. Count number of signe changes. This creates unique issues (for this assignmnet we will use cash flows with only one sign change) 5. Set up PW = 0, determine i* 6. Select economically better solution. If i* for b-a is less than MARR select A If i* for b-a is greater than MARR extra investment is justified, select B if i* same or very clsoe to MARR non-economic factor could be sued to make the best selection Incremental Cash Flows - Mutually Exclusive Alternatives Your airline is considering upgrading filtration systems for your aircraft. This has become a more important issue due to the recent COVID-19 pandemic. The filtration system will remove 99.95 percent of infectious diseases and pollutants from the aircraft air which is recirculated through the aircraft many time per hour. A benefit of the new system is reduce risk of lawsuits due to poor air circulation, reduction in customer complaints and the the system will also help reduce fuel costs. The table presents the data for the two options. Sweet Air The Clean Air Initial cost per aircraft, $-1000-1500 Estimated savings per year, $375700in year 1 100decrease per year thereafter Estimated life (All dollar amounts in $100 dollar increments) Develop a model to make this decision In creting your model create two graphs 1. PW versus i for both alternatives' cash flows and PW vs delta i values for incremental cash flows 2. Estimate the break even ROR for both graphs and use this estiamte to select one alternative.