A company is considering the purchase of one of the following new pieces of

equipment and has a minimum desired rate of return of $6\mathrm{.}9\%.$ Machine $1$ has a life of $4$

years; Machine $2$ has a life of $5$ years.

Answer the questions below, considering the cash inflows should be indicated as

positive values and cash outflows should be indicated as negative values. The

company would like these calculations to be performed in Microsoft Excel without use

of the Present Value tables.