The alternative for an engineering project to recover most of the energy presently being lost in the primary cooling stage of a chemical processing system have been reduced to three designs. The estimated capital investment amounts and annual expense savings are as follows:

a) Using excel: Apply an NPV (individually) and incremental analysis method to determine the preferred alternative.

Design EOY ER1 ER2 ER3 0 $98,600 $115,000 $81,200 25,800 29,000 19,750 6%," G $150 34,526 29,750 19,750 After year one, the annual savings are estimated to increase at the rate of 6% per year. b After year one, the annual savings are estimated to increase $150 per year. Uniform sequence of annual savings