Give a correct title to each column, and under each column explain what it represents or what formula was used to calculate the numbers that you show. You may handwrite these notes onto the paper after printing, if you wish to do that, and add any extra explanations to help the grader follow your solution. Anytime you use MS Excel to solve problems you need to provide the spreadsheet file itself, not just a PDF file.

4. If you purchase a batch of 25 Stihl saws for your maintenance crew, they can do contract tree removal work that yields $900,000 in new revenue per year. The Stihl saw costs $1100 each to purchase, and that flat purchase price includes the annual maintenance and an extended warranty to take the saw through 4 years of use. After 4 years of use the saws will be scrapped with an expected salvage value of $150 each. 25 Husqvarna saws will only enable your crew to earn $770,000 per year in new revenue, but they cost less: $550 each, which includes the annual maintenance and a standard warranty of 2 years use. To rent a Husqvarna saw costs $330 each per year (and yields the same revenue as when the saw is purchased). Use the Contract Services approach, and i = 8% to compare these two alternatives.