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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. Click the 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 & $460,000 & $380,000 & $280,000 \\ Annual revenues * & $90,000 & $60,000 & $70,000 \\ Annual cost * & $7,000 & $6,000 & $10,000 \\ Salvage value & $35,000 & $30,000 & $45,000 \\ Life of asset & 15 years & 15 years & 15 years \\ \hline \end{tabular} "Annual revenue and cost figures are increases over the "do nothing" alternative (DN). More Info

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