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Argosy University/ Phoniex University/
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Phoniex University
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Please show all work using excel functions. Thank you. Assignment 7 |
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| Automated Welding Services, Inc. (AWS) business has been growing and they need to raise their automation to the next level. They have collected data on five alternative machines/processes for which the data is shown below.   Only a single alternative will be selected.  AWS uses a 5-year time horizon for project justifications. Submit your solution in a spreadsheet. | |||||||
| a | Determine which will offer the largest internal rate of retun for AWS. | ||||||
| b | Using an internal rate of return criterion with an incremental analysis, determine which alternative will offer the largest monetary benefit to AWS if their MARR is 12%. | ||||||
| c | What is the difference between parts a and b? | ||||||
| Â | MARR | Time Horizon | Â | Â | Â | ||
| Â | 12% | 5 | years | Â | Â | Â | Â |
| Altern- ative | Investment in year 0 | Annual Cash Flow | Salvage value in last year | Â | Â | Â | Â |
| A1 | $50,000 | $18,000 | $0 | Â | Â | Â | Â |
| A2 | $250,000 | $85,000 | $75,000 | Â | Â | Â | Â |
| A3 | $350,000 | $110,000 | $175,000 | Â | Â | Â | Â |
| A4 | $600,000 | $150,000 | $400,000 | Â | Â | Â | Â |
| A5 | $800,000 | $175,000 | $600,000 | Â | Â | Â | Â |
| Â | Â | Â | Â | Â | Â | Â | Â |
| Solution | Â | Â | Â | Â | Â | Â | Â |
| Â | Â | Â | Â | Â | Â | Â | Â |
| Â | Â | ||||||
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