In: Finance
A Mining firm has to consider investing amongst any of the three mutually exclusive coal mines. Depending on the expected quality of coal extracted every year, the selling price and initial equipment investment per metric ton is shown in the table below. MARR is 10 percent/year.
EOY | A1 | B2 | C3 |
0 | -1500 | -1800 | -2100 |
1 | 800 | 650 | 750 |
2 | 350 | 620 | 450 |
3 | 280 | 400 | 400 |
4 | 210 | 170 | 180 |
a) What is the annual worth of each alternative?
b) Determine which alternative should be recommended using incremental analyses?
(Please don't use NPV function)
I want excel soution