For the following table, assume a MARR of 99% per year and a useful life for each alternative of six years that equals the study period. The rank-order of alternatives from least capital investment to greatest capital investment is Do NothingACB. Complete the IRR analysis by selecting the preferred alternative.

(a) The IRR of (CB) is ____%

(b) What is the preferred alternative? Choose the correct answer below.

Do nothing

Alternative A

Alternative B

Alternative C

A Capital investment A Annual revenues A Annual costs A Market value A IRR Do Nothing A A C C B $15,000 $2,000 $3,500 4,000 460 900 1,000 75 150 3,350 6,000 2,220 12.7% 10.5%