Question: Your local foundry is adding a new furnace. There are several different styles and types of furnaces, so the foundry must select from among a

Your local foundry is adding a new furnace. There are several different styles and types of furnaces, so the foundry must select from among a set of mutually exclusive alternatives. Initial capital investment and annual expenses for each alternative are given in the table below. None have any market value at the end of its useful life. Using a MARR of 15%, which furnace should be chosen?

	Furnace
	F1	F2	F3
Investment	$110,000	$125,000	$138,000
Useful life	10 years	10 years	10 years
Total annual expenses	$53,800	$51,625	$45,033

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