Question: Read carefully each problem and solve showing all your assumptions and calculations. 2. Three revenue projects are under consideration for improving material flow in a
Read carefully each problem and solve showing all your assumptions and calculations.
2. Three revenue projects are under consideration for improving material flow in a production process. Assume a life of 10 years and a MARR of 16% per year to determine which alternative is best using an incremental ROR analysis. (10 pts)
Show all your assumptions and calculations
| Project | First Cost ($) | Operating Cost ($per year) | Annual Income ($per year) |
| N80 | -80,000.00 | -2,500.00 | 20,500.00 |
| N60 | -60,000.00 | -5,000.00 | 11,500.00 |
| N65 | -65,000.00 | -3,000.00 | 18,000.00 |
Include all your assumptions, the incremental cash flow tables, rate of return equation, and IRR results for each comparison.
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