Instruction: For each of the following problems, select the alternative that is the best solution 1-3. The following cash flow estimates have been developed for two small, mutually exclusive investment alternatives. The minimum attractive rate of return is 15% per year. End of Year Alternative Alternative 2 IRR of alternative 2 is closest to: -$2,500 750 750 750 750 2,750 $4,000 1,200 1.200 1,200 1,2003,200 1. A. 12% B. 15% C.18% D. 20% E. 25% Formula used: 2. The incremental IRR is closest to? B. 15% A. 12% C.1896 D. 20% E. 25% Formula used: Which alternative should be selected? A. Alternative 1 3. B. Alternative 2 C. Neither D. Both 1 and 2 Decision Criterion