which of the alternatives should be selected on the basis of Incremental rate of return analysis where MARR is 4% per quarter compounded semi annual? The estimated cash flows for each alternative are as follows:

Alternative 1 Alternative 2 Alternative 3

Initial Investment $20,000 $18,000 $8,000

Annual cost (per year) $5000 $4000 $3000

Salvage value $8,000 $6,000 $2000

Useful life 10 years 10 years 5 years