Select the correct answer: 3. Alternative 1 and 2 are two mutually exclusive investment alternatives with estimated net cash flows. The useful life of each alternative in this example is seven years. The Incremental IRR method is going to be use to solve the problem. The MARR is 5%. Alternative 1 with 6.42% Alternative Alternative 2 with 10.58% 1 2 Capital investment Annual revenues less expenses $110,000-$120,000 20,000 25,000 OAI OAI Alternative 1 with 40.65%