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A Mining firm has to consider investing amongst any of the three mutually exclusive coal mines....

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

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Expert Solution

jeff jeffy answered 8 months ago
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