Toronto General Hospital is reviewing ways of cutting the cost of stocking medical supplies. Two new stockless systems are being considered to lower the hospital's holding and handling costs. The hospitals industrial engineer has compiled the relevant financial data for each system as follows (dollar values are in millions): Current Practice Just-in-Time System Stockless Supply System Start-up cost so $2.5 $5 Annual stock holding $3.1 $1.6 $0.4 cost $2 $1.5 $1.2 Annual operating cost System life 8 years 8 years 8 years The system life of 8 years represents the period that the contract with the medical suppliers is in force. The hospitals MARR is 12%. a) What is the incremental rate of return going from the current practice to the just in time system? AIRR for Just in time - Current practice (keep 2 decimal places in numerical results) b) What is the incremental rate of return going from the just in time system to the stockless supply system? AIRR for Stockless supply - Just in time = c) What is the incremental rate of return going from the current practice to the stockless supply system? AIRR for Stockless supply - Current practice = (keep 2 decimal places in numerical results) d) Based on the above calculated number, which option is the best by utilizing the incremental rate of return criterion? (keep 2 decimal places in numerical results)