How to compute for:

- PVF @6.67%

-PVAF(6.67%,3yrs)

-PVAF(6.67%, 5yrs)

in excel?

ice Automation, Inc., must choose between two copiers, the XX40 or the RH45. The XX40 costs $2 years. The copier will require a real aftertax cost of $160 per year after all relevant expenses. The I last five years. The real aftertax cost for the RH45 will be $255 per year. All cash flows occur at the ion rate is expected to be 5 percent per year, and the nominal discount rate is 12 percent. Which co choose? Year 0 1 XX40 $2,400 $160 $160 $160 RH45 -$2,900 $255 $255 -$255 -$255 -$255 Present Values XX40 (2,400.00) (150.00) (140 62) (131 84) PVF @6.67% 1.00 0.9375 0.87890 0.82397 0.77247 0.72419 NPV PVAF(@6.67%,3Yrs) PVAF(@6.67%,5Yrs) EAC RH45 $2,900.00 $239.06 $224.12 $210.11 $198.98 $184.67 -$3,954.94 (2,822.46) 2.6404 4 1371 -$955.97 (1,068.95)