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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 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.) Incremental Investment A( Inc. PW Alternative to be selected i image text in transcribed
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Fieata Foundiy is considoring a now furnace that wit allow them to be more productive. Three altemotive fumaces are under cor using the IRR method for each increment of cach flows. The MARR is 11% per year. Click the ion to viow the description of the allernatives Click the icon to view the interest and annuity table for discrote compounding when the MARR is 11% per year. Perform the incremental PW Mralysis. Fil- in the table bolow (Hint: Ordor asornatives by increasing capital investment). (Round to the noarest dollar) \begin{tabular}{lrrr} \hline & Furnace A & Furnace B & Furnace C \\ \hline Initial investment & $430,000 & $340,000 & $250,000 \\ Annual revenues * & $80,000 & $70,000 & $60,000 \\ Annual cost * & $6,000 & $5,000 & $9,000 \\ Salvage value & $35,000 & $50,000 & $45,000 \\ 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}{l} 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} \\ \hline N & \begin{tabular}{l} To Find F \\ Given P \\ FIP \end{tabular} & \begin{tabular}{l} To Find P \\ Given F \\ PIF \\ \end{tabular} & \begin{tabular}{c} To Find F \\ Given A \\ FlA \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 \\ Glven P \\ AlP \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 & 6.749 & 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 & 58051 & 1696 & & 7 5ARA & 00225 & n1325 \\ \hline \end{tabular}

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