*** Please answer the following questions when respoding to this question** :

1. Which alternative is base one?

2. Analyze the difference between the base one alternative and the second? (insert alternative) - (insert alternative) = %? (round to one decimal place)

3. Analyze the difference between the current base alternative and the second? (insert alternative) - (insert alternative) = %? (round to one decimal place)

4. Which alternative should be selected and why?

BOOK USED: Engineering Economy

Thank you!

You are the President of AMT Enterprises. You have the opportunity to expand your product line to include a new semi-conductor wafer fabrication line. In order to produce the new wafer, you must invest in a new production process. In addition to doing nothing (DN), two mutually exclusive processes are currently available to produce the wafer. Should you produce this new wafer? In other words, which, if either of the alternative processes should be chosen? Note: IRR for Alternative l = 21.4%, and IRR for Alternative II = 22.9%. Assume that the capital investment for each alternative occurs at year 0 and that the annual revenues and expenses first occur at the end of year 1, Use the incremental IRR method to justify your decision. Your company's MARR is 12%. Click the icon to view the alternatives description You are the President of AMT Enterprises. You have the opportunity to expand your product line to include a new semi-conductor wafer fabrication line. In order to produce the new wafer, you must invest in a new production process. In addition to doing nothing (DN), two mutually exclusive processes are currently available to produce the wafer. Should you produce this new wafer? In other words, which, if either of the alternative processes should be chosen? Note: IRR for Alternative l = 21.4%, and IRR for Alternative II = 22.9%. Assume that the capital investment for each alternative occurs at year 0 and that the annual revenues and expenses first occur at the end of year 1, Use the incremental IRR method to justify your decision. Your company's MARR is 12%. Click the icon to view the alternatives description