Furnace A Furnace B Furnace C Initial investment $500,000 $390,000 $200,000 Annual revenues * $90,000 $60,000 $60,000 Annual cost $11,000 $14,000 $15,000 Salvage value $30,000 $35,000 $30,000 Life of asset 10 years 10 years * Annual revenue and cost figures are increases over the "do nothing" alternative (DN). * 10 years cowNZ 1 N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 Discrete Compounding; i = 12% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.1200 0.8929 1.0000 0.8929 1.0000 1.2544 0.7972 2.1200 1.6901 0.4717 1.4049 0.7118 3.3744 2.4018 0.2963 1.5735 0.6355 4.7793 3.0373 0.2092 1.7623 0.5674 6.3528 3.6048 0.1574 1.9738 0.5066 8.1152 4.1114 0.1232 2.2107 0.4523 10.0890 4.5638 0.0991 2.4760 0.4039 12.2997 4.9676 0.0813 2.7731 0.3606 14.7757 5.3282 0.0677 3.1058 0.3220 17.5487 5.6502 0.0570 3.4785 0.2875 20.6546 5.9377 0.0484 3.8960 0.2567 24.1331 6.1944 0.0414 4.3635 0.2292 28.0291 6.4235 0.0357 4.8871 0.2046 32.3926 6.6282 0.0309 5.4736 0.1827 37.2797 6.8109 0.0268 6.1304 0.1631 42.7533 6.9740 0.0234 6.8660 0.1456 48.8837 7.1196 0.0205 7.6900 0.1300 55.7497 7.2497 0.0179 8.6128 0.1161 63.4397 7.3658 0.0158 9.6463 0.1037 72.0524 7.4694 0.0139 10.8038 0.0926 81.6987 7.5620 0.0122 12.1003 0.0826 92.5026 7.6446 0.0108 13.5523 0.0738 104.6029 7.7184 0.0096 15.1786 0.0659 118.1552 7.7843 0.0085 17.0001 0.0588 133.3339 7.8431 0.0075 29.9599 0.0334 241.3327 8.0552 0.0041 52.7996 0.0189 431.6635 8.1755 0.0023 93.0510 0.0107 767.0914 8.2438 0.0013 163.9876 0.0061 1358.2300 8.2825 0.0007 289.0022 0.0035 2400.0182 8.3045 0.0004 Capital Recovery Factor To Find A Given P AIP 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770 0.1684 0.1614 0.1557 0.1509 0.1468 0.1434 0.1405 0.1379 0.1358 0.1339 0.1322 0.1308 0.1296 0.1285 0.1275 0.1241 0.1223 0.1213 0.1207 0.1204 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 12% 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 12% 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 Inc. PW Alternative to be selected A( $ Furnace A Furnace B Furnace C Initial investment $500,000 $390,000 $200,000 Annual revenues * $90,000 $60,000 $60,000 Annual cost $11,000 $14,000 $15,000 Salvage value $30,000 $35,000 $30,000 Life of asset 10 years 10 years * Annual revenue and cost figures are increases over the "do nothing" alternative (DN). * 10 years cowNZ 1 N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 Discrete Compounding; i = 12% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.1200 0.8929 1.0000 0.8929 1.0000 1.2544 0.7972 2.1200 1.6901 0.4717 1.4049 0.7118 3.3744 2.4018 0.2963 1.5735 0.6355 4.7793 3.0373 0.2092 1.7623 0.5674 6.3528 3.6048 0.1574 1.9738 0.5066 8.1152 4.1114 0.1232 2.2107 0.4523 10.0890 4.5638 0.0991 2.4760 0.4039 12.2997 4.9676 0.0813 2.7731 0.3606 14.7757 5.3282 0.0677 3.1058 0.3220 17.5487 5.6502 0.0570 3.4785 0.2875 20.6546 5.9377 0.0484 3.8960 0.2567 24.1331 6.1944 0.0414 4.3635 0.2292 28.0291 6.4235 0.0357 4.8871 0.2046 32.3926 6.6282 0.0309 5.4736 0.1827 37.2797 6.8109 0.0268 6.1304 0.1631 42.7533 6.9740 0.0234 6.8660 0.1456 48.8837 7.1196 0.0205 7.6900 0.1300 55.7497 7.2497 0.0179 8.6128 0.1161 63.4397 7.3658 0.0158 9.6463 0.1037 72.0524 7.4694 0.0139 10.8038 0.0926 81.6987 7.5620 0.0122 12.1003 0.0826 92.5026 7.6446 0.0108 13.5523 0.0738 104.6029 7.7184 0.0096 15.1786 0.0659 118.1552 7.7843 0.0085 17.0001 0.0588 133.3339 7.8431 0.0075 29.9599 0.0334 241.3327 8.0552 0.0041 52.7996 0.0189 431.6635 8.1755 0.0023 93.0510 0.0107 767.0914 8.2438 0.0013 163.9876 0.0061 1358.2300 8.2825 0.0007 289.0022 0.0035 2400.0182 8.3045 0.0004 Capital Recovery Factor To Find A Given P AIP 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770 0.1684 0.1614 0.1557 0.1509 0.1468 0.1434 0.1405 0.1379 0.1358 0.1339 0.1322 0.1308 0.1296 0.1285 0.1275 0.1241 0.1223 0.1213 0.1207 0.1204 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 12% 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 12% 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 Inc. PW Alternative to be selected A( $