address the following:

• Provide an analysis of the financial performance of both alternatives using net present value (NPV), accounting rate of return (ARR), internal rate of return (IRR), and payback. (Note: ARR is also called Return on Investment, or ROI.).
• Calculate the NPV, payback, IRR, and ARR. (include your calculations within the report)
• Analyze each of the alternatives based on your calculations and illustrate to the executive team which alternative should yield the highest return.

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Air Scrubbers Furnace Fuel Change Initial Investment $ 1,350,000 $ 1,385,000 Annual Net Cash Flows $ 225,000 $ 315,000 Annual Net Income $ 135,000 $ 150,000 Project Life Average Book Value Cost of Capital 15 years 15 years $ 675,000 $ 692,500 6% 6% Air Scrubbers Furnace Fuel Change Initial Investment $ 1,350,000 $ 1,385,000 Annual Net Cash Flows $ 225,000 $ 315,000 Annual Net Income $ 135,000 $ 150,000 Project Life Average Book Value Cost of Capital 15 years 15 years $ 675,000 $ 692,500 6% 6%