Just Caluate for each potential vendor oand show formula used

(3) Prepare a life-cycle cost analysis for the procurement of a front end loader for Jefferson City based on data from three companies. Also, the city is trading in the old front-end loader. Note that the Trade in and Re- sale Value should be subtracted from the amount of the life-cycle cost. All calculations should be rounded to the nearest dollar amount. Solve for the energy cost prior to calculating the life-cycle cost. When you finish your calculations, indicate which bid should be accepted. Briefly explain your response. See appendix 7B for a copy of the spreadsheet. 2 Jefferson City 3 Anderson's Wechsler's -4 Heavy Equipment International 5 Company 1 Company 2 6 Bid Price $77,180.00 $78,500.00 7 Trade in Value $3,300.00 $2,900.00 8 Expected Use 85,000 miles 85,000 miles 9 Life Expectancy 5 years 10 Efficiency Rating 82% 80% 11 Energy cost 12 (12 mpg) (11 mpg) 13 Resale Value $6,000.00 $5,200.00 14 Maintenance Cost $24,000.00 $22,000.00 15 Life-Cycle Cost 16 17 Life-Cycle Cost Difference = 18 5 years McClain's Front End Loaders Company 3 $82,000.00 $3,500.00 85,000 miles 5 years 89% Calculate for each potential vendor (14 mpg) $6,500.00 $20,000.00 Calculate for each potential vendor SO Calculate 19 20 Currently, diesel costs $3.94 per gallon. 21 22 The city should accept the bid by Company 3. It has the highest efficiency rating, highest 23 mpg, lowest maintenance cost, highest resale value, and the lowest life-cycle cost. 24 25