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Fiesta Foundry is considering a new furnace that will allow them to be more productive. Three alternative furnaces are under consideration. Perform an incremental analysis

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Fiesta Foundry is considering a new furnace that will allow them to be more productive. Three alternative furnaces are under consideration. Perform an incremental analysis of these alternatives using the IRR method for each increment of cash flows. The MARR is 11% per year. Click the icon to view the description of the alternatives. icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. Perform the incremental PW Analysis. Fill-in the table below (Hint: Order alternatives by increasing capital investment). (Round to the nearest dollar.) \begin{tabular}{lrrr} \hline & Furnace A & Furnace B & Furnace C \\ \hline Initial investment & $480,000 & $400,000 & $290,000 \\ Annual revenues * & $90,000 & $90,000 & $80,000 \\ Annual cost * & $10,000 & $15,000 & $13,000 \\ Salvage value & $40,000 & $45,000 & $40,000 \\ Life of asset & 10 years & 10 years & 10 years \\ \hline \end{tabular} "Annual revenue and cost figures are increases over the "do nothing" alternative (DN). \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Discrete Compounding; i=11%} \\ \hline & \multicolumn{2}{|c|}{ Single Payment } & \multicolumn{4}{|c|}{ Uniform Series } \\ \hline & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{l} Sinking \\ Fund \\ Factor \end{tabular} & \begin{tabular}{c} Capital \\ Recovery \\ Factor \\ \end{tabular} \\ \hlineN & \begin{tabular}{c} To Find F \\ Given P \\ FIP \end{tabular} & \begin{tabular}{c} To Find P \\ Given F \\ PIF \end{tabular} & \begin{tabular}{c} To Find F \\ Given A \\ FIA \end{tabular} & \begin{tabular}{c} To Find P \\ Given A \\ PIA \end{tabular} & \begin{tabular}{c} To Find A \\ Given F \\ AIF \end{tabular} & \begin{tabular}{c} To Find A \\ Given P \\ A/P \end{tabular} \\ \hline 1 & 1.1100 & 0.9009 & 1.0000 & 0.9009 & 1.0000 & 1.1100 \\ \hline 2 & 1.2321 & 0.8116 & 2.1100 & 1.7125 & 0.4739 & 0.5839 \\ \hline 3 & 1.3676 & 0.7312 & 3.3421 & 2.4437 & 0.2992 & 0.4092 \\ \hline 4 & 1.5181 & 0.6587 & 4.7097 & 3.1024 & 0.2123 & 0.3223 \\ \hline 5 & 1.6851 & 0.5935 & 6.2278 & 3.6959 & 0.1606 & 0.2706 \\ \hline 6 & 1.8704 & 0.5346 & 7.9129 & 4.2305 & 0.1264 & 0.2364 \\ \hline 7 & 2.0762 & 0.4817 & 9.7833 & 4.7122 & 0.1022 & 0.2122 \\ \hline 8 & 2.3045 & 0.4339 & 11.8594 & 5.1461 & 0.0843 & 0.1943 \\ \hline 9 & 2.5580 & 0.3909 & 14.1640 & 5.5370 & 0.0706 & 0.1806 \\ \hline 10 & 2.8394 & 0.3522 & 16.7220 & 5.8892 & 0.0598 & 0.1698 \\ \hline 11 & 3.1518 & 0.3173 & 19.5614 & 6.2065 & 0.0511 & 0.1611 \\ \hline 12 & 3.4985 & 0.2858 & 22.7132 & 6.4924 & 0.0440 & 0.1540 \\ \hline 13 & 3.8833 & 0.2575 & 26.2116 & 6.7499 & 0.0382 & 0.1482 \\ \hline 14 & 4.3104 & 0.2320 & 30.0949 & 6.9819 & 0.0332 & 0.1432 \\ \hline 15 & 4.7846 & 0.2090 & 34.4054 & 7.1909 & 0.0291 & 0.1391 \\ \hline 16 & 5.3109 & 0.1883 & 39.1899 & 7.3792 & 0.0255 & 0.1355 \\ \hline 17 & 5.8951 & 0.1696 & 44.5008 & 7.5488 & 0.0225 & 0.1325 \\ \hline 18 & 6.5436 & 0.1528 & 50.3959 & 7.7016 & 0.0198 & 0.1298 \\ \hline 19 & 7.2633 & 0.1377 & 56.9395 & 7.8393 & 0.0176 & 0.1276 \\ \hline 20 & 8.0623 & 0.1240 & 64.2028 & 7.9633 & 0.0156 & 0.1256 \\ \hline 21 & 8.9492 & 0.1117 & 72.2651 & 8.0751 & 0.0138 & 0.1238 \\ \hline 22 & 9.9336 & 0.1007 & 81.2143 & 8.1757 & 0.0123 & 0.1223 \\ \hline 23 & 11.0263 & 0.0907 & 91.1479 & 8.2664 & 0.0110 & 0.1210 \\ \hline 24 & 12.2392 & 0.0817 & 102.1742 & 8.3481 & 0.0098 & 0.1198 \\ \hline 25 & 13.5855 & 0.0736 & 114.4133 & 8.4217 & 0.0087 & 0.1187 \\ \hline 30 & 22.8923 & 0.0437 & 199.0209 & 8.6938 & 0.0050 & 0.1150 \\ \hline 35 & 38.5749 & 0.0259 & 341.5896 & 8.8552 & 0.0029 & 0.1129 \\ \hline 40 & 65.0009 & 0.0154 & 581.8261 & 8.9511 & 0.0017 & 0.1117 \\ \hline 45 & 109.5302 & 0.0091 & 986.6386 & 9.0079 & 0.0010 & 0.1110 \\ \hline 50 & 184.5648 & 0.0054 & 1668.7712 & 9.0417 & 0.0006 & 0.1106 \\ \hline \end{tabular} Fiesta Foundry is considering a new furnace that will allow them to be more productive. Three alternative furnaces are under consideration. Perform an incremental analysis of these alternatives using the IRR method for each increment of cash flows. The MARR is 11% per year. Click the icon to view the description of the alternatives. icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. Perform the incremental PW Analysis. Fill-in the table below (Hint: Order alternatives by increasing capital investment). (Round to the nearest dollar.) \begin{tabular}{lrrr} \hline & Furnace A & Furnace B & Furnace C \\ \hline Initial investment & $480,000 & $400,000 & $290,000 \\ Annual revenues * & $90,000 & $90,000 & $80,000 \\ Annual cost * & $10,000 & $15,000 & $13,000 \\ Salvage value & $40,000 & $45,000 & $40,000 \\ Life of asset & 10 years & 10 years & 10 years \\ \hline \end{tabular} "Annual revenue and cost figures are increases over the "do nothing" alternative (DN). \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Discrete Compounding; i=11%} \\ \hline & \multicolumn{2}{|c|}{ Single Payment } & \multicolumn{4}{|c|}{ Uniform Series } \\ \hline & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{c} Compound \\ Amount \\ Factor \end{tabular} & \begin{tabular}{c} Present \\ Worth Factor \end{tabular} & \begin{tabular}{l} Sinking \\ Fund \\ Factor \end{tabular} & \begin{tabular}{c} Capital \\ Recovery \\ Factor \\ \end{tabular} \\ \hlineN & \begin{tabular}{c} To Find F \\ Given P \\ FIP \end{tabular} & \begin{tabular}{c} To Find P \\ Given F \\ PIF \end{tabular} & \begin{tabular}{c} To Find F \\ Given A \\ FIA \end{tabular} & \begin{tabular}{c} To Find P \\ Given A \\ PIA \end{tabular} & \begin{tabular}{c} To Find A \\ Given F \\ AIF \end{tabular} & \begin{tabular}{c} To Find A \\ Given P \\ A/P \end{tabular} \\ \hline 1 & 1.1100 & 0.9009 & 1.0000 & 0.9009 & 1.0000 & 1.1100 \\ \hline 2 & 1.2321 & 0.8116 & 2.1100 & 1.7125 & 0.4739 & 0.5839 \\ \hline 3 & 1.3676 & 0.7312 & 3.3421 & 2.4437 & 0.2992 & 0.4092 \\ \hline 4 & 1.5181 & 0.6587 & 4.7097 & 3.1024 & 0.2123 & 0.3223 \\ \hline 5 & 1.6851 & 0.5935 & 6.2278 & 3.6959 & 0.1606 & 0.2706 \\ \hline 6 & 1.8704 & 0.5346 & 7.9129 & 4.2305 & 0.1264 & 0.2364 \\ \hline 7 & 2.0762 & 0.4817 & 9.7833 & 4.7122 & 0.1022 & 0.2122 \\ \hline 8 & 2.3045 & 0.4339 & 11.8594 & 5.1461 & 0.0843 & 0.1943 \\ \hline 9 & 2.5580 & 0.3909 & 14.1640 & 5.5370 & 0.0706 & 0.1806 \\ \hline 10 & 2.8394 & 0.3522 & 16.7220 & 5.8892 & 0.0598 & 0.1698 \\ \hline 11 & 3.1518 & 0.3173 & 19.5614 & 6.2065 & 0.0511 & 0.1611 \\ \hline 12 & 3.4985 & 0.2858 & 22.7132 & 6.4924 & 0.0440 & 0.1540 \\ \hline 13 & 3.8833 & 0.2575 & 26.2116 & 6.7499 & 0.0382 & 0.1482 \\ \hline 14 & 4.3104 & 0.2320 & 30.0949 & 6.9819 & 0.0332 & 0.1432 \\ \hline 15 & 4.7846 & 0.2090 & 34.4054 & 7.1909 & 0.0291 & 0.1391 \\ \hline 16 & 5.3109 & 0.1883 & 39.1899 & 7.3792 & 0.0255 & 0.1355 \\ \hline 17 & 5.8951 & 0.1696 & 44.5008 & 7.5488 & 0.0225 & 0.1325 \\ \hline 18 & 6.5436 & 0.1528 & 50.3959 & 7.7016 & 0.0198 & 0.1298 \\ \hline 19 & 7.2633 & 0.1377 & 56.9395 & 7.8393 & 0.0176 & 0.1276 \\ \hline 20 & 8.0623 & 0.1240 & 64.2028 & 7.9633 & 0.0156 & 0.1256 \\ \hline 21 & 8.9492 & 0.1117 & 72.2651 & 8.0751 & 0.0138 & 0.1238 \\ \hline 22 & 9.9336 & 0.1007 & 81.2143 & 8.1757 & 0.0123 & 0.1223 \\ \hline 23 & 11.0263 & 0.0907 & 91.1479 & 8.2664 & 0.0110 & 0.1210 \\ \hline 24 & 12.2392 & 0.0817 & 102.1742 & 8.3481 & 0.0098 & 0.1198 \\ \hline 25 & 13.5855 & 0.0736 & 114.4133 & 8.4217 & 0.0087 & 0.1187 \\ \hline 30 & 22.8923 & 0.0437 & 199.0209 & 8.6938 & 0.0050 & 0.1150 \\ \hline 35 & 38.5749 & 0.0259 & 341.5896 & 8.8552 & 0.0029 & 0.1129 \\ \hline 40 & 65.0009 & 0.0154 & 581.8261 & 8.9511 & 0.0017 & 0.1117 \\ \hline 45 & 109.5302 & 0.0091 & 986.6386 & 9.0079 & 0.0010 & 0.1110 \\ \hline 50 & 184.5648 & 0.0054 & 1668.7712 & 9.0417 & 0.0006 & 0.1106 \\ \hline \end{tabular}

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