Automated Welding Services, Inc. (AWS) business has been growing and they need to raise their automation to

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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. Provide Spreadsheet formulas.
1. Determine which will offer the largest internal rate of return for AWS.
2. Determine using the internal rates of return criterion with an incremental analysis which will offer the largest monetary benefit to AWS if their MARR is 12%.
3. What is the difference between parts a and b?
Annual Cash Flow Altern- ative Investment in year 0 Salvage value in last year A1 $50,000 $18,000 SO $250,000 $85,000 $7
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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