Sam is buying a refrigerator. He has two choices. A used one, at $425, should last him about three years. A new one, at $1275, would likely last eight years. Both have a scrap value of zero. Use an IRR analysis to determine which of the two alternatives is best. The MARR is 8 percent. Use the repeated lives method to deal with the unequal service lives of the two alternatives. Determine the best option.