Froblem $5($Question Value: $12\})$

You have three contracts from which to choose. The first contract will require an outlay of $100,000$ but will retum $151,000$ one year from

now. The second contract requires an outlay of $200,000$ and will return $319,000$ one year from now. The third contract requres an outlay

of $250,000$ and will return $374,000$ one year from now. Only one contract can be accepted. If your MARR is $20\%,$ which one should you

choose $($Perform all calculations using $5$ significant figures and round your answers to the nearest whole percent$)?$

Answers entered using text are case sensitive$!$

What is the IRR on the increment from doing nothing to Option $1?$

$\%[\frac{3}{12}]$

Do you accept contract $1$ at this point $($enter either Yes" or $\text{'}$No$\text{'})?$

$[1/12]$

What is the IRR on the increment from Option $1$ to Option $2?$

$[3/12]$

Do you accept contract $2$ at this point $($enter eicher "Yes' or $\text{'}$No$\text{'})?$

$\frac{1}{12}$

What is the IRR on the increment from Option $2$ to Option $3?$

$3/12]$

O you accept contract $3$ at this point $($enter either 'Yes' or $"$No$")?$

$[1/12]$