2.2 Part 2: Purchase of excavators The company is considering to purchase construction plant for use on construction projects. The details of three options are as follows: Option 1 Buy two large exators with expected income and expenditure cashflows as follows: Option 2 Buy two medium sized excavators and a tipper truck with expected income and expenditure cashflows as follows: Option 3 Buy a large excavator and two tipper trucks with expected income and expenditure cashflows as follows: Determine the NPV of each of the three options and recommend an option for implementation. As a means to check your calculations, use the following three methods for calculating the NPV for each of the options: - NPV option to calculate the AE in the Constant Rand Domain - Change cash flow option to calculate the AE in the constant Rand domain - FV option to calculate the AE in the Constant Rand domain Assume i=10% and f=6% Clearly show the calculations for all three methods. Scanned with CamScanner 2.2 Part 2: Purchase of excavators The company is considering to purchase construction plant for use on construction projects. The details of three options are as follows: Option 1 Buy two large exators with expected income and expenditure cashflows as follows: Option 2 Buy two medium sized excavators and a tipper truck with expected income and expenditure cashflows as follows: Option 3 Buy a large excavator and two tipper trucks with expected income and expenditure cashflows as follows: Determine the NPV of each of the three options and recommend an option for implementation. As a means to check your calculations, use the following three methods for calculating the NPV for each of the options: - NPV option to calculate the AE in the Constant Rand Domain - Change cash flow option to calculate the AE in the constant Rand domain - FV option to calculate the AE in the Constant Rand domain Assume i=10% and f=6% Clearly show the calculations for all three methods. Scanned with CamScanner