The estimated capital investment and the annual expenses (based on 1,500 hours of operation per year) for four alternative designs of a diesel-powered air compressor are shown, as well as the estimated market value for each design at the end of the common five year useful life. The study period is five years, and the MARR is 20 % per year. One of the designs must be selected for the compressor, and each design provides the same level of service. Based on this information: Determine the preferred alternative design using the IRR method and Show that the PW method (i = MARR) using the incremental analysis procedure, results in the same decision. Observe that this is a cost type situation with four mutually exclusive cost alternatives. The estimated capital investment and the annual expenses (based on 1,500 hours of operation per year) for four alternative designs of a diesel-powered air compressor are shown, as well as the estimated market value for each design at the end of the common five year useful life. The study period is five years, and the MARR is 20 % per year. One of the designs must be selected for the compressor, and each design provides the same level of service. Based on this information: Determine the preferred alternative design using the IRR method and Show that the PW method (i = MARR) using the incremental analysis procedure, results in the same decision. Observe that this is a cost type situation with four mutually exclusive cost alternatives