y Sdn. Bhd. is evaluating new FastBits Electronic Compan precision inspection devices to help verify package quality. The manager has obtained the following bids from four All devices have a life of five years and a minimum attractive rate of return of 5%. The alternatives are mutually exclusive. companies Descriptio Company A Company B Company C Company D Initial Cost (RM 350000 Anmual Costs (RM) 900 Net Cash Flows (RM) 87500 IRR 112000 550000 23000 200000 12000 1360 137500 12.4% 9000 46200 7.9% 7.9% 5% Determine the annual benefits of the devices from all four companies Company A: Company B Company C: Company D:Forma:46400 Device from which company has the highest annual benefit? Format 58800 Format: 32690 Format: 890700 Format: A FastBits should reject the bid from which company based on the given individual IRR? Using incremental internal rate of return analysis, from which company, if any, should the manager purchase the new precision inspection device? Use trial and error method with 5% and 1 190 Format: A interest rates. Understood? (YN) Format : A Step 1-Eliminate Company Step 2 - Rank Company from no 1-2-3 Format: A Format X-X-X Step 4 Incremental IRR first comparison Step 5 - Remove Company from selection Repeat Step 4 Incremental IRR 2nd comparison Step 5 Choose Company Format : 2.4 : A Format : 5.6 Demonstrate that the same c Format Format: A ompany selection would be made with proper application of the Present Worth (PW) method. PW Company A Format: 59967 Format: 28729 Format: 78806 Format:35 PW Company B PW Company C PW Company D Thus, choose Company Format: A