Fantastic Footwear can invest in one of two different automated clicker cutters. The first, A, has a $130,000 first cost. A similar one with many extra features, B has a $508,000 first cost. A will save $50,000 per year over the cutter currently in use. B will save $140,000 per year. Each clicker cutter will last five years. If the MARR is 10 percent, which alternative i better? Use an IRR comparison. For the increment from the do-nothing alternative to cutter A, the IRR is percent. For the increment from cutter A to cutter B, the IRR is percent. Therefore, should be chosen