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.

1. Your company must choose between two options: (a) Cessna Citation, which costs $4.5 million to purchase, $1.1 million per year of operation to fly and maintain, and has an expected useful life of 6 years, with a salvage value of $1.4 million, and (b) Dassault Falcon, which costs $5.2 million to purchase, $0.8 million per year of operation to fly and maintain, and has an expected useful life of 9 years, with a salvage value of $2.3 million. For an interest rate of 7% per year, use Present Worth Analysis to determine which alternative should be selected. Clearly identify any assumptions that you make in conducting this analysis.