My Drive - Google Drive ips/doc 08.30-apps- upload Assignment ASSIG. - Google Drive Objective: This activity has the purpose of helping students solve mutually exclusive problems with different lives using the Microsoft Excel software and perform a sensitivity analysis. (Objective 4) Student Instructions: Read example to be used to compute the present and annual worth with different lives. Textbook example 6-7, Useful lives # Study Period: The repeatability assumption (Sullivan W., Wicks E., and Patrick C.), page 266: The following data have been estimated for two mutually exclusive investment alternatives, A and B, associated with a small engineering project for which revenues as well as expenses are involved. They have useful lives of four and six years, respectively. If MARR is 10% per year, show which alternative is more desirable by using equivalent worth methods. Use the repeatability assumption. AB Capital investment $3,500 $5,000 Annual cash flow 1,255 1,480 Useful life (years) Market value at end of useful 0 0 lite 1. Have available the Microsoft Excel software program. 2. Construct a table in the Microsoft Excel work sheet as shown below. The instructions are shown in the second table. D 0.1 MARR = -3500 -5000 1255 1480 1255 1480 1255 1480 When finished, make sure to click Submit. Deaf to my changes and continue working later, or click Cancel to quit without saving changes. Cancel TI/002-08-38-apps. Upload Assignment Assig. Det er C MARR = DE 0.1 -3500 1255 -5000 1480 1255 1255 -2245 1480 1480 -3520 1480 1480 1480 1480 1480 1480 $ 1,027.86 $2,261.89 12 aos 12 aos Note: year 4 and year 8 is 1.255 - 3,500 = - $2,245 in alternative A, and in alternative B the year 6 is 1,480 - 5,000 = $3520 1. The construction of the Microsoft Excel sheets and the answered questions has a total grading value of eight (8) points. 2. The deadline for hand in this exercise is indicated at the end of the week of the eighth module. Steps: 1. Start the Microsoft Excel software program. Enter the information exactly as below. MARR -3500 Sood 1255 1480 1480 00vwNO 1255 1255 -2245 1255 1480 1255 1480 1480 -3520 1480 1255 1255 1255 1480 1480 1480 1255 1255 1480 1480 --PV(D1,816,C5,0) +C+04101)^{-4)+C4*(1+01)-8) PV/D1,816,05,0) +04+04"/1+01) 4-6) 12 anos 22 aos 12 alios (do not forget to write the = sign) To format columns with numbers: right click the mouse in the cell you which to modify, select format cell, and number. The equal (*) sign means that you have an equation and it will compute automatically what is indicated in the cell. a. Write and answer the following questions using the Microsoft Excel spreadsheet. You may copy the questions and write the answer below the table in the Excel sheet b. Once you have built the Excel tables, with all the changes in different tables, and answered all the questions you have to send the work (Excel sheets and answered questions) to the professor using the Attach File function in Black Board to attach your document and send it to the professor. To use the Attach File enter the Course Content in Black Board. Select the Assignment Module 8, attach the file and submit. When finished, make sure to click Submit. b. Once you have built the Excel tables, with all the changes in different tables, and answered all the questions you have to send the work (Excel sheets and answered questions) to the professor using the Attach File function in Black Board to attach your document and send it to the professor. To use the Attach File enter the Course Content Black Board. Select the Assignment Module 8, attach the file and submit. Questions (You only have to write in Excel one of the answers, the one you think is the correct answer to the question) 1. When you evaluate both alternative in 12 years (project repetition), the best alternative is B: a. True b. False 2. When you evaluate A in four years and B in six years, the best alternative is B: c. True d. False 3. When you evaluate both alternative in four years, the best alternative is A: a. True b. False 4. When the interest rate is changed from 10% to 20% in problem 1, the best alternative is B: a. True b. False When finished, make sure to click Submit