The alternatives for an engineering project to recover most of the energy presently in 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: Assume that the MARR is 12% per year, the study period is six years, and the market value is zero for all three designs a. Using PW method determine the preferred alternative. (On-hand analysis). Draw the cash flow for ER1, ER2 and ER3. b. Using Excel: Apply an NPV (individually) and incremental analysis method to determine the preferred alternative. a 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. c Uniform sequence of annual savings