Company has 4 revenue options.

Option A: initial cost of $300,000, annual savings of $65,000, salvage of $150,000, useful life of 6 years

Option B: initial cost of $495,000, annual savings of $80,000, an additional one-time saving of $150,000 in year 3, salvage of $250,000, useful life of 4 years

Option C: initial cost of $350,000, annual savings of $100,000, salvage of $200,000, useful life of 3 years

Option D: initial cost of $400,000, annual savings of $100,000, salvage of $300,000, useful life of 2 years

a) If the options are independent and MARR is 15%, which should be selected? Justify answer using ROR.

b) If the options are mutually exclusive and MARR is 15%, which should be selected? Just answer using ROR.

c) If MARR is 20%, which should be selected if they are independent options?

d) If MARR is 20%, which should be selected if they are mutually exclusive?