You consider 3 options for snow removal this winter (doing nothing is not an option). . Buy a manual snow blower for $1,000 with $100/year in O&M costs. You plan to hire your young neighbor for 25 hours/year at $10/hour to remove snow with the snow blower. . Buy a more expensive snow blower mounted on tracks for $1,250 with $125/year in O&M costs. You plan to hire your young neighbor for 15 hours/year at $10/hour to remove snow with the snow blower. . Have a contract with a snow removal company for $600/year. The 3 options are summarized in the table: 1- Manual snow 2- Snow blower 3- Snow removal blower mounted on tracks contract Initial cost $1,000 $1,250 $0 O & M costs $100/year $125/year $0 Service costs $0/year $0/year $600/year Workforce 25 hours/year at 15 hours/year at $10/hour $10/year 0 hours/year You want to determine what is the best option, using a 5 years study period, MARR=8% and the Internal Rate of Return method. (a) Which options would you select as the first Challenger and Defender? Select between Part (a) - Options 1 to 4. (b) Suppose you need to compare the Challenger: Snow blower mounted on tracks to the Defender: Snow removal contract. What is the IRR on the incremental investment? Select between Part (b) - Options 1 to 4. (c) What is you decision criteria to select the Challenger over the Defender? Select between Part (c) - Options 1 to 4. (d) Based on the Challenger/Defender approach, which option would you select? Select between Part (d) - Options 1 to 3. Select 4 correct answer(s) ()Part (a) - Option 1: Defender: Manual snow blower and Challenger: Snow removal contract ()Part (a) - Option 2: Defender: Snow blower mounter on tracks and Challenger: Manual snow blower (Part (a) - Option 3: Defender: Snow removal contract and Challenger: Manual snow blower Part (a) - Option 4: Defender: Manual snow blower and Challenger: Snow blower mounted on tracks Part (b) - Option 1: IRR=3.3%Part (b) - Option 2: IRR=9.4% Part (b) - Option 3: IRR=7.9% Part (b) - Option 4: IRR=8.0% ()Part (c) - Option 1: Select challenger if IRR of the Challenger investment > MARR ()Part (c) - Option 2: Select challenger if IRR of the incremental investment (Challenger - Defender) > MARR (]Part (c) - Option 3: Select challenger if IRR of the incremental investment (Challenger - Defender) MARR ()Part (d) - Option 1: Select the manual snow blower Part (d) - Option 2: Select the snow blower mounted on tracks ()Part (d) - Option 3: Select the snow removal contract