Nine has three contracts from wrich to choose. The first contract wil require an outlay of $$110,000$ but will retum $$148,500$ one year from now. The second contrect requires an outiay of $$230,000$

and will refum $$322,500$ che year from now. The third contract requires an outloy $$$$300,000$ and will refurn $$399,500$ one year from now. Only one contract can be accepled. If her MARR is $20$

percont, which one should she choose?

For the increment from the do$-$nothing alkernative to the first contract, the IFR is

percent. For the increment from the first contract to the second contract, the IRR is

percent. For the incroment

from the socond contract to the third contract, the IRR is percent. Therefore,

should be chosen.

$($Type integers or decimals rounded to one decimal place as noeded.$)$