Problem 1: Using incremental rate of return, determine which of the following options is the most cost effective provided a minimum annual rate of return (MARR) of 10%, a useful life of 5 years, and the following data: Option 1: Initial Cost: $10,000 Annual Cost: $1,200/year Salvage Value: $5,000 Option 2: Initial Cost: $7,500 Annual Cost: $1,800/year Salvage Value: $4,000