If someone could help me create equations in excel that would be great
and the Mortgage 13- Analyzing Purchasing vs. Leasia e G Auto compenal subassembly plants. Currently, these parts are all ns for C KG Auto car manufacturing assembly plants rely on parts from multiple outside and l transported via e kgendent ruement group has been dissatisfied lately with the service levels provided management group has been dissatisfied latel ns shipped and trucking companies, as wel as with the rising costs of roughly 6.0 these outside ear for the two t similar inion over the next seven years. To do so, the group has compiled some last two years. These costs are expected to rise in the foreseeable future determine if purchasing or leasing a fleet of trucks would be a more rates, according to industry analysts. Th operations management begining a study to ost-eftctive solution afthe costs for cach transport option, as follows: group is Il Trucking by others-Using several different trucking carriers, the CKG Auto com- pact car manufacturing group currently pays $12,000,00 which can be used to reduce income for purposes of calculating tax purchase would be based on the following annually in trucking fees. these costs are expected to rise at an annual rate of 6%. So in year 1, thecost ted to be S 12 million plus an additional 6%, All costs are considered expenses, 2) Buying trucks-If CKG Auto purchased a fleet of 20 trucks, the cost of such a The model of truck being considered with trailers is estimated to cost $125,000 " This purchase would be funded using a bank loan. The bank is willing to lend the Manage per truck. This amount will be spent in year 0 (now) money at a 4.75% annual interest rate compounded quarterly over the next four years. ons management group has been directed to assume that if CKG Auto year period, assuming a salvage value of 8% of the original purchase price A 10% down payment will be required, which can be funded from current assets. The operati purchasesthis fleet, it would be depreciated using straight line depreciation oven full s for year 1 are estimated at $3.80 per mile; this includes driver , insurance, maintenance, fees, and licenses. It is also assumed that each se ven- , gas average 150,000 miles per year. For year 2 and all subsequent years ume a cost increase of 3.5% per year lowin culation of taxes, CKG Auto can deduct from cach year's income the fol perating costs, the interest portion of the loan payments, and depreciation ass above the previous year and the Mortgage 13- Analyzing Purchasing vs. Leasia e G Auto compenal subassembly plants. Currently, these parts are all ns for C KG Auto car manufacturing assembly plants rely on parts from multiple outside and l transported via e kgendent ruement group has been dissatisfied lately with the service levels provided management group has been dissatisfied latel ns shipped and trucking companies, as wel as with the rising costs of roughly 6.0 these outside ear for the two t similar inion over the next seven years. To do so, the group has compiled some last two years. These costs are expected to rise in the foreseeable future determine if purchasing or leasing a fleet of trucks would be a more rates, according to industry analysts. Th operations management begining a study to ost-eftctive solution afthe costs for cach transport option, as follows: group is Il Trucking by others-Using several different trucking carriers, the CKG Auto com- pact car manufacturing group currently pays $12,000,00 which can be used to reduce income for purposes of calculating tax purchase would be based on the following annually in trucking fees. these costs are expected to rise at an annual rate of 6%. So in year 1, thecost ted to be S 12 million plus an additional 6%, All costs are considered expenses, 2) Buying trucks-If CKG Auto purchased a fleet of 20 trucks, the cost of such a The model of truck being considered with trailers is estimated to cost $125,000 " This purchase would be funded using a bank loan. The bank is willing to lend the Manage per truck. This amount will be spent in year 0 (now) money at a 4.75% annual interest rate compounded quarterly over the next four years. ons management group has been directed to assume that if CKG Auto year period, assuming a salvage value of 8% of the original purchase price A 10% down payment will be required, which can be funded from current assets. The operati purchasesthis fleet, it would be depreciated using straight line depreciation oven full s for year 1 are estimated at $3.80 per mile; this includes driver , insurance, maintenance, fees, and licenses. It is also assumed that each se ven- , gas average 150,000 miles per year. For year 2 and all subsequent years ume a cost increase of 3.5% per year lowin culation of taxes, CKG Auto can deduct from cach year's income the fol perating costs, the interest portion of the loan payments, and depreciation ass above the previous year
