Question 3: Caterpillar Inc. would like to invest in upgrading current fabrication techniques on its Excavator assembly line. Three mutually exclusive design options are being considered. All have a 10-year useful life. If the MARR is 22%, determine which design should be selected based on: a) the PW method, b) AW method, and c) the IRR method. (Note: perform incremental analysis only for the IRR method) Design 1 (8) Design 2 ($) Design 3 (S) 40,000 50,000 55,000 Capital Investment (cost) Uniform Annual Benefit Power Saving Labor Reduced Maintenance 4,000 3,000 3,000 3,000 5,000 5,000 5,000 5,000 4,000