(Show work, please!)

A business is evaluating two alternative, mutually exclusive methods for a deli bar to be added to their stores. It has developed the following estimated after- tax cost savings for each alternative method. The project discount, and reinvestment, rate is 11%.

	To	T1	T2	T3
A: Staffed Deli	(35,500)	23,000	26,200	31,200
B: Self Serve Deli	(27,500)	19,700	21,300	23,500

a. Which method (staffed or self serve) would you recommend using an NPV approach?

b. Which method would you recommend using the MIRR #3 Approach?

c. Which method do you recommend? Explain fully.