I need help and there is two parts to this question move in order and show your work !!
the first is Picture is instructions !!
this is first part !!
second Part
PV of single amount table
PV of an annuity table
Yogeschowofu mwiche There is the nmail ilan Rasi powdy will be greci non contri Since the decision to byw will only when you will be change with the highest (which in the will be the project with SAST 201) The 10 Taditial Pearl Auts. yarted Gwer BLOOD AMC Bay, dead Got the cast of gas ined 3.30 paletewey Theme the Thermostate 16.000 330 Hy Auto The pictober Care 54.000 Melayu, 3450 dolor Ger Get The cost of 3.30 ya The De Saat of 1,300 T The US tai. SED Pad tu Mapa 2459 tar roc 56" 19 410 K pouse break 7 8 9 0 A Paste BDU- a A. Merge Center - Clipboard Font Alignment G30 D Am PVF of Cat Flow Traditional Gas Powered Auto Cost ofte Minhente pe You Cast of Gas per year Shayo Water Net Piret Value U an trum Hybrid Auto SA PEMER CA TNC MwYw Cape Yew 5 V SPY Thes Gas- 13.30 al Gas 45 Toy FF Type here to search o IT O D 2 7 N 3 4 5 5 6 7 Q W E R Y U Clipboard Font Alignment E21 A Traditional Gas Powered Auta PVFVFlow Costel Ao Maitsee pee Year Cost of Gael Yem Se Value Presented mm trid Auto BA Patolog Cesto TC MY Castore SY th Gas - $450 Type to search - 2 X Y @ TE D 2 N $ 3 4 6 5 6 7 8 Q W E R Y U S D PV- LO TARE2 Present Value of $1 51 (1+ 1.0 12.04 20 20 20 LO 4 con 20 LA 10.0 110 120 20.01 1 WIZZ 079 0.5 0.970 SS . SISA BI 300 0.93 0.2 0.110 . . 20.000 7 3117 095181 0 1 0 9573 YOS AT THE MOST 0.40 VOS 05422 07200.91514 0190 OG 141 m 2 2.77218 71071178 0500 4 0.90 0.9210 ZS ORSOS IZZO 0722 720 DO 072 0.0 AT ISS OS 509510 OKT 061797 1019 753 75 1726 712 0.002S OSTO 0.001 696205 54 W 20 KG 150 00 0.709 747 0.7 0.70 M 0.37 0.5 SMD 0 0.000 7 V 0.001056 17 0 2 0 0 1 0 0 0.25 m am 0.25 0.27 234 71 OSH QOS0.71 0.07 MAMO . S OS OS DAS GAN G. 070 09104 ROL ORO O 200 M DATI SO SAM SE U 0.00 N20 0.19981 10 GOY OS 120.409 .002 0.0 MM 1 O QUE OS GAN .. 16151 11 DE 0.732 MA Q10 V 0 0 2800 2172 200 Q.10 12 745 OM29 789 0.70 6.700 u AMD SOS ANT GO 0 0 231 2. 0.11284 11 10401 02 GM DAG. SO SE DA TO Z OSS 072912 . 140. 1165 0.750 0.70773 112 0.17 HOW TZS AZ OROS 100 . 15 OMS OM 6047 BOSS DAY 04 05 06 07164 AN 2000 100 OL 16 0.16202 0.700.7285 BATH AT SIYOS OU 1 OS 100 1012 350 11 M 7139 14 QASIO OSSO OU 6 S 0.770.7 0.6 0.7 G G4 GOVO 15 DEMO 10.0016 04117 SH OS DATOS 159 250 210 150 12001 0.0156 19 0 14 11 0 0 1 0 9 0 2 0 0 0 0 0 1 0 FR 02466 4/1/1 4 1 1 1 1 1 1 1T como 2001054 MOU O DATOS DESC . n . . . . . 2011 073150 WEST DAS GAB 0.0016 0.2151 21 00:11:09054 GOT74 24 US OSA 2 : CAVI IN 2012 TO 100 157 00 00125 >> 21.00 OW BATILI 2.0 S 011307 BOX 2. DAMO STO 0.00 0.00 0.00 0.250 2.1500119 0.00 29 08934 SA DAU DOS OS 0.00 0.00 0.204 633 GIB 0 0.7490 AM 11 000 02 0.11011 0 0 00 OTIASA 54135 DAT10.990 191 O 0.22 0.0 0.0 0.0 40 10.0029 BOSS 11 2 0.01 0907 0.000 You are considering the purchase of a new vehicle. There are two options for the auto acquisition: a traditional gas-powered auto or a hybrid auto. Based on the information provided below and using net present value (NPV), you will be evaluating the two options and making a recommendation. Note: this scenario is a least cost decision. Since the decision to buy a car will only involve costs, you will be choosing the option with the highest NPV (which in this case, will be the project with the LEAST negative NPV). The assumed discount rate is 10% Traditional Gas-Powered Auto: Project Life : The autos are going to be kept for 7 years before being sold. Cox of Auto: $18,000 Annual Maintenance Cost. Each year, maintenance costs will be a fixed $300 Gas Cost. The cost of gas is estimated to be an average of $3.30 per gallon over the next 7 years. The auto gets an average of 30 miles to the gallon. The auto is to be driven 16,000 miles per year. Salvage Value: The car has an estimated salvage value of $4,000 at the and of 7 years Hybrid Auto Project Life. The autos are going to be kept for 7 years before being sold. Cort of Auto: $24,000 Annual Maintenance Cont. Each year, maintenance costs will be a fixed $450 (hybrid maintenance costs are higher due to more complex technology). Gas Con The cost of gas is estimated to be an average of 53.30 per pallon over the next 7 years. The auto gets an average of 35 miles to the gallon. The auto is to be driven 16,000 miles per year. Salvage Value. The car has an estimated salvage value of $7,000 at the and of 7 years Tax Credit. The US government encourage the purchase of more fuel efficient autos, and has offered a $1,000 tax credit in the year of purchase of a qualifying vehicle. Note: The tax credit represents a cash inflow, as it represents cash arred on taxes. Assume the tax credit is taken at the END of the first year of ownership Required: 1) Calculate the NPV for both auto purchases. 2) Makce a recommendation for which car you would purchase 3) Assume tai prices rise to an averate of $4.50 per tallon. Recalculate the NPVA Yogeschowofu mwiche There is the nmail ilan Rasi powdy will be greci non contri Since the decision to byw will only when you will be change with the highest (which in the will be the project with SAST 201) The 10 Taditial Pearl Auts. yarted Gwer BLOOD AMC Bay, dead Got the cast of gas ined 3.30 paletewey Theme the Thermostate 16.000 330 Hy Auto The pictober Care 54.000 Melayu, 3450 dolor Ger Get The cost of 3.30 ya The De Saat of 1,300 T The US tai. SED Pad tu Mapa 2459 tar roc 56" 19 410 K pouse break 7 8 9 0 A Paste BDU- a A. Merge Center - Clipboard Font Alignment G30 D Am PVF of Cat Flow Traditional Gas Powered Auto Cost ofte Minhente pe You Cast of Gas per year Shayo Water Net Piret Value U an trum Hybrid Auto SA PEMER CA TNC MwYw Cape Yew 5 V SPY Thes Gas- 13.30 al Gas 45 Toy FF Type here to search o IT O D 2 7 N 3 4 5 5 6 7 Q W E R Y U Clipboard Font Alignment E21 A Traditional Gas Powered Auta PVFVFlow Costel Ao Maitsee pee Year Cost of Gael Yem Se Value Presented mm trid Auto BA Patolog Cesto TC MY Castore SY th Gas - $450 Type to search - 2 X Y @ TE D 2 N $ 3 4 6 5 6 7 8 Q W E R Y U S D PV- LO TARE2 Present Value of $1 51 (1+ 1.0 12.04 20 20 20 LO 4 con 20 LA 10.0 110 120 20.01 1 WIZZ 079 0.5 0.970 SS . SISA BI 300 0.93 0.2 0.110 . . 20.000 7 3117 095181 0 1 0 9573 YOS AT THE MOST 0.40 VOS 05422 07200.91514 0190 OG 141 m 2 2.77218 71071178 0500 4 0.90 0.9210 ZS ORSOS IZZO 0722 720 DO 072 0.0 AT ISS OS 509510 OKT 061797 1019 753 75 1726 712 0.002S OSTO 0.001 696205 54 W 20 KG 150 00 0.709 747 0.7 0.70 M 0.37 0.5 SMD 0 0.000 7 V 0.001056 17 0 2 0 0 1 0 0 0.25 m am 0.25 0.27 234 71 OSH QOS0.71 0.07 MAMO . S OS OS DAS GAN G. 070 09104 ROL ORO O 200 M DATI SO SAM SE U 0.00 N20 0.19981 10 GOY OS 120.409 .002 0.0 MM 1 O QUE OS GAN .. 16151 11 DE 0.732 MA Q10 V 0 0 2800 2172 200 Q.10 12 745 OM29 789 0.70 6.700 u AMD SOS ANT GO 0 0 231 2. 0.11284 11 10401 02 GM DAG. SO SE DA TO Z OSS 072912 . 140. 1165 0.750 0.70773 112 0.17 HOW TZS AZ OROS 100 . 15 OMS OM 6047 BOSS DAY 04 05 06 07164 AN 2000 100 OL 16 0.16202 0.700.7285 BATH AT SIYOS OU 1 OS 100 1012 350 11 M 7139 14 QASIO OSSO OU 6 S 0.770.7 0.6 0.7 G G4 GOVO 15 DEMO 10.0016 04117 SH OS DATOS 159 250 210 150 12001 0.0156 19 0 14 11 0 0 1 0 9 0 2 0 0 0 0 0 1 0 FR 02466 4/1/1 4 1 1 1 1 1 1 1T como 2001054 MOU O DATOS DESC . n . . . . . 2011 073150 WEST DAS GAB 0.0016 0.2151 21 00:11:09054 GOT74 24 US OSA 2 : CAVI IN 2012 TO 100 157 00 00125 >> 21.00 OW BATILI 2.0 S 011307 BOX 2. DAMO STO 0.00 0.00 0.00 0.250 2.1500119 0.00 29 08934 SA DAU DOS OS 0.00 0.00 0.204 633 GIB 0 0.7490 AM 11 000 02 0.11011 0 0 00 OTIASA 54135 DAT10.990 191 O 0.22 0.0 0.0 0.0 40 10.0029 BOSS 11 2 0.01 0907 0.000 You are considering the purchase of a new vehicle. There are two options for the auto acquisition: a traditional gas-powered auto or a hybrid auto. Based on the information provided below and using net present value (NPV), you will be evaluating the two options and making a recommendation. Note: this scenario is a least cost decision. Since the decision to buy a car will only involve costs, you will be choosing the option with the highest NPV (which in this case, will be the project with the LEAST negative NPV). The assumed discount rate is 10% Traditional Gas-Powered Auto: Project Life : The autos are going to be kept for 7 years before being sold. Cox of Auto: $18,000 Annual Maintenance Cost. Each year, maintenance costs will be a fixed $300 Gas Cost. The cost of gas is estimated to be an average of $3.30 per gallon over the next 7 years. The auto gets an average of 30 miles to the gallon. The auto is to be driven 16,000 miles per year. Salvage Value: The car has an estimated salvage value of $4,000 at the and of 7 years Hybrid Auto Project Life. The autos are going to be kept for 7 years before being sold. Cort of Auto: $24,000 Annual Maintenance Cont. Each year, maintenance costs will be a fixed $450 (hybrid maintenance costs are higher due to more complex technology). Gas Con The cost of gas is estimated to be an average of 53.30 per pallon over the next 7 years. The auto gets an average of 35 miles to the gallon. The auto is to be driven 16,000 miles per year. Salvage Value. The car has an estimated salvage value of $7,000 at the and of 7 years Tax Credit. The US government encourage the purchase of more fuel efficient autos, and has offered a $1,000 tax credit in the year of purchase of a qualifying vehicle. Note: The tax credit represents a cash inflow, as it represents cash arred on taxes. Assume the tax credit is taken at the END of the first year of ownership Required: 1) Calculate the NPV for both auto purchases. 2) Makce a recommendation for which car you would purchase 3) Assume tai prices rise to an averate of $4.50 per tallon. Recalculate the NPVA
