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Fiesta Foundry is considering a new furnace that will allow them to be more productive. Three altemative furnaces are under consideration. Perform an incremental analysis
Fiesta Foundry is considering a new furnace that will allow them to be more productive. Three altemative furnaces are under consideration. Perform an incremental analysis of these alternatives using the IRR method for each increment of cash flows. The MARR is 13% per year Click the icon to view the description of the alternatives Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. More info Perform the incremental PW Analysis. Fill-in the table below (Hint: Order alternatives by increasing capital investment) (Round to the nearest dollar.) Incremental Investment Inc. PW Alternative to be selected Initial investment Furnace A $490,000 Furnace B Furnace C $310,000 $240,000 Annual revenues Annual cost Salvage value $60,000 $6,000 540,000 $60,000 $70,000 $5,000 $40,000 $12,000 $30,000 Life of asset 20 years 20 years 20 years Annual revenue and cost figures are increases over the "do nothing" alternative (DN). Print Done
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