Four mutually exclusive alternatives are being considered for the production equipment at a company. The firms MARR is 10% per year. The estimated initial investment and internal rate of return for each alternative are the following.

Initial IRR Alternative Investment $120,000 25.0% 10.0% 18.5% $180,000 $200,000 21.0% 20.0% 14.0% 23.0% $250,000 Incremental IRR 20% 20% 36.0% 11.0% 12.0% Initial IRR Alternative Investment $120,000 25.0% 10.0% 18.5% $180,000 $200,000 21.0% 20.0% 14.0% 23.0% $250,000 Incremental IRR 20% 20% 36.0% 11.0% 12.0%