Engineering Economics (Solve using excel)

"I Need a new car that I will keep for 5 years. The car costs $25,999 and I have three options. I need a new car that will keep for 5 years. I can (A) pay $25,999 now, (B) make monthly payments for a 9% 5-year loan with $0 down, or (C) make lease payments for $470 per month for the next 5 years. The lease option also requires a security deposit of $1,500. What should I do?

Assume that the vehicle's value after 5 years is $7,000. Remember that lease payments are made at the beginning of the month and the salvage value is received only if you own the vehicle. (note: if you lease a vehicle, you do not own it after 5 years. Also if lease payments are made at the beginning of the month, that means the first payment s already at its present value)

1. Plot graph to compare the EUAC of the three alternatives for nominal interest rates from 0% to 50%.

2. Using goal seek and your graph in part 1, build a choice table (please show how to use goal seek)

3. If interest = 9% use an incremental rate of return analysis to recommend which option should be chosen. (note: choose the best alternative among the 3 options)