I have attached the questions in picture format.

Clean Duds Laundromat has an industrial water softener that enhances the water quality used

in its washing machines. The water softener is approaching the end of its useful life and must

be either overhauled or replaced. Details of the two alternatives are shown below.

If the company overhauls its current water softener, then it will be usable for eight more

years. If, instead, a new water softener is purchased, it will be used for eight years, after which

it will be replaced. The new water softener will be considerably more energy efficient, resulting

in a substantial reduction in annual operating costs, as shown below:

Current

Water

Softener New

Water Softener Purchase cost new $ 12,000 $ 16,000 Remaining book value $ 8,500 ? Overhaul needed now $ 6,000 ? Annual cash operating costs $ 8,000 $ 5,700 Salvage value now $ 2,800 ? Salvage value eight years from now $ 1,400 $ 3,800

Clean Duds computes depreciation on a straight-line basis. All equipment purchases are evaluated using a 12% discount rate.

Clean Duds Laundromat has an industrial water softener that enhances the water quality used in its washing machines. The water softener is approaching the end of its useful life and must be either overhauled or replaced. Details of the Mo alternatives are shown below. tithe company overhauls its current water softener, then it will be usable for eight more years. If, instead, a new water sottener is purchased. it will be used for eight years, alter which it will be replaced. The new water softener will be considerably more energy efcient. resulting in a substantial reduction in annual operating costs. as shown below: Currant: New Water Water Softener Softener Purchase cost: new $12,000 $15,000 Remaining book value $ 8,500 Overhaul needed now $ 6,000 Annual oaeh operating coats $ 8,000 $ 5.?00 Salvage value now $ 2,000 Salvage value eight: years from now 5 1,400 3 3.300 Clean Duds computes depreciation on a straight-line basis. All equipment purchases are evaluated using a 12% discount rate. Required: {Ignore income taxes.) 1-a. Determine the present value of net cash flows using the total-cost approach. [Hint Use Microsoft Excel to calculate the discount factor{s].} {Enter any cash outows with a minus sign. Do not round intermediate calculations and round nal answers to the nearest dollar amount} Purchase the new softener Upgrade and Keep the old softener Required? {Ignore income taxes.) 1-a. Determine the present value of net cash ows using the total-cost approach. [Hint Use Microsoft Excel to calculate the discount facto r{s].} (Enter any cash outows with a minus sign. Do not round intermediate calculations and round nal answers to the nearest dollar amount.) Purchase the new softener Upgrade and Keep the old softener 1-b. Should Clean Duds Laundromat upgrade the old water softener or purchase the new one?| 3 Purchase the new softener o _ Upgrade the old softener 2. Using the incremental-cost approach, determine the net present value in favor of [or against} purchasing the new water softener? {Hint Use Microsoft Excel to calculate the discount factor(s}.] {Do not round intermediate calculations and round final answer to the nearest dollar amount.) :I