The alternatives for an engineering project to recover most of the energy being lost in the primary cooling stage of a chemical processing syste reduced to three designs. The estimated capital investment amounts a expense savings are as follows: presently nd annual Assume that the MARR is 12% per year, the study period is six years, a value is zero for all three designs nd the market 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. Design EOY ER1 ER2 ER3 0 98,600 25,800 -$115,000 -$81,200 19,750 29,000 6%" G $150 34,526 29,750 19,750 d After year one, the annual savings are estimated to increase at the rate of 6% per year. After yearone, the annual savings are estimated to increase $150 per year Uniform sequence of annual savings