Management of Wile-IT Computing Company is also reviewing three different investment scenarios for the follow-on phase the solar power generation project. The different alternatives and their net cash flows are shown in the following table.

Using incremental rate-rate-of-return analysis, determine which alternative should be selected if the firm must choose an option and if a do-nothing option is available. Wile-IT Computing Company uses a MARR of 35%.

Construct the following:

(a) A table that depicts the internal and incremental cash flows and rate-of-return calculations

(b) A decision matrix that summarizes the internal and incremental rate-of-returns

\begin{tabular}{|c|c|c|c|c|c|c|} \hline Alternative & 0 & 1 & 2 & 3 & 4 & 5 \\ \hline A & (4,895,954) & 2,241,029 & 2,220,062 & 2,171,048 & 2,594,747 & 2,608,296 \\ \hline B & (6,217,360) & 3,330,229 & 3,303,816 & 3,201,703 & 2,900,826 & \\ \hline C & (9,978,340) & 5,755,605 & 5,697,878 & 6,289,191 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline Alternative & 0 & 1 & 2 & 3 & 4 & 5 \\ \hline A & (4,895,954) & 2,241,029 & 2,220,062 & 2,171,048 & 2,594,747 & 2,608,296 \\ \hline B & (6,217,360) & 3,330,229 & 3,303,816 & 3,201,703 & 2,900,826 & \\ \hline C & (9,978,340) & 5,755,605 & 5,697,878 & 6,289,191 & \\ \hline \end{tabular}