Problem 6-7 (algorithmic) Question Help Fiesta Foundry is considering a new furnace that will allow...
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Problem 6-7 (algorithmic) Question Help Fiesta Foundry is considering a new furnace that will allow them to be more productive. Three alternative fumaces 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 Inc. PW AC-DNS Alternative to be selected Furnace C * More Info Furnace A Furnace Furnace C Initial investment $410,000 $320,000 $300,000 Annual revenues $90,000 $70,000 $70,000 Annual cost" $10,000 $15,000 $6,000 Salvage value $35,000 $35,000 $50,000 Life of asset 15 years 15 years 15 years * Annual revenue and cost figures are increases over the "do nothing" alternative (DN)
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