Page of s College of Engineering EGR 303-0 Engineering Eeearmy 2-TEST Pal open Book Closed Notes NAME: :SHOW ALL WORK. Problem 3 (40 pts) The merger has caused quite bit of internal stress among the employees, so the company has decided to purchase smoothie of the breakrooms. The HR department has determined that the smoothies machines will actually provide a net savings to the company in the form of fewer complaints and internal formal investigations. Using the standard company-wide MARR of 8%.the purchasing department has provided several alternatives, as shown below: Cyberdyne 1395 Initial Costs Annual Expenses S478.10 S528,10 S508.10 Annual Savings S678.10 S738.10 S738.10 5130 160 S200 Salvage Value 9 9 9 Life, years a) 15 points] Draw an accurate cash flow diagram for the "baseline" altemative. b) 135 points] Use the INCREMENTAL ERR approach to determine which mixer should be purchased. Assume the reinvestment rate is equal to the MARR. Be explicit in setting up your analysis step by step and explain your steps. (Hint: Remember that for an altermative to "win" using the incremental analysis the incremental ERR needs only to beat the MARR-the actual value of the ERR is not significant)