Q2- Your local foundry is adding a new furnace. There are two different styles and types of furnaces, so the foundry must select from among a set of mutually exclusive alternatives. Initial capital investment and annual revenues for each alternative are given in the Table2 below. None have any market value at the end of its useful life. The useful life of each furnace is 10 years, and the MARR is 15%. a) Using the incremental analysis procedures, which furnace should be chosen? [Fill in the required results in Table 5 and Table 6 below]. No need to use Excel. b) Discuss how your proposed choice in part a might affect the economic, environmental and social context? Table 2: Mutually Exclusive Alternatives Cash flows Furnaces F1 F2 Capital Investment ($) Total Annual Revenues ($) 110000 125000 53800 54625

Q2- Your local foundry is adding a new furnace. There are two different styles and types of furnaces, so the foundry must select from among a set of mutually exclusive alternatives. Initial capital investment and annual revenues for each alternative are given in the Table2 below. None have any market value at the end of its useful life. The useful life of each furnace is 10 years, and the MARR is 15%. a) Using the incremental analysis procedures, which furnace should be chosen? [Fill in the required results in Table 5 and Table 6 below]. No need to use Excel. b) Discuss how your proposed choice in part a might affect the economic, environmental and social context? Table 2: Mutually Exclusive Alternatives Cash flows Furnaces F1 F2 Capital Investment ($) Total Annual Revenues ($) 110000 125000 53800 54625

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Penny and Daughter’s construction business is considering purchasing a new Bobcat. The equipment will cost $230,000 and is expected to last 14 years. The Bobcat has a salvage vale of $16,000. Calculate the depreciation AND book value for each year. You can create one table for a-d or you can create different tables for each. This problem will need to be done in excel. (30 points)a. Use straight-line depreciation. (5 points)b. Use declining-balance depreciation with a depreciation rate that ensures the book value equals the salvage vale in the last year of the life of the equipment. c. Use double declining balance depreciation. d. Use MACRS depreciation where the Bobcat is considered a 10 year property. e. Graph the Book values of each methods on a single graph. The graph should have points at each year for each BV and a line of each method. You will have 4 lines on your graph. You should include year 0 on your graph so that all four lines start at the same point. Each method should be…
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Please solve attached question normally, not using excel. thanks!
How would I solve this? Thanks!
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