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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
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 per year.
Heres the Table
Initil Investment: Furnace A:$ Furnace B:$ Furnace C:$
Annual Revenues: A: $ B: $ c:$
Annual cost: A: $ B: $ C: $
Salvage value: A: $ B: $ C: $
Life of asset: A: years. C: years. B: years
Perform the incremental PW Analysis. Fillin the table belowHint: Order alternatives by increasing capital investment
incremental Investment: Do I pick Which furnace or DNdo nothing, which furnace or DN
whats the Inc. PW is dollars
Alternative to be selected?
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