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in details please Fiesta Foundry is considering a new furnace that will allow them to be more productive. Three alternative furnaces are under consideration. Perform
in details please
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) Info Initial investment Annual revenues Annual cost Salvage value Life of asset Furnace A S500;ooo sgo,ooo S12,ooo S40,ooo 20 years Furnace B S400,ooo S80,ooo S15,ooo S35,ooo 20 years Incremental Investment Furnace C S240;ooo S80,ooo S15,ooo S40,ooo 20 years Inc. PW Alternative to be selected Instructor tip Start comparisons including DN (do nothing) option * Annual revenue and cost figures are increases over the "do nothing" alternative (DN).
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