PLEASE CALCULATE YELLOW PARTS

Item Description Price /Item Quantity Total Price Crew Truck 2012 Ford F-250 Super Duty $40,000 2 $80,000 perform a replacement analysis with the following assumptions 1. Savage value deceases by 11% every year. 2. Manufacturer'swarranty will cover the first 3 years of maintenance. 3. Maintenance will cost 2% of the intial cost in the fourth year and will increase 5% each year thereafter in an geometric gradient. 4. Operating expense for the machinery will be 1.5% of the initia cost for the first year and will increase on a 2% of the intial cost aithentic gradient each year. 5. Assume 7% interest. Init cost Interest Year Sum of PW ELAC of Maintenance Operating cost cash flows PW of Operating Sum of PW EUAC of Operating ELAC Total EUAC of Maintenance PW of Salvage Value Capital Costs Cash Flow Maintenance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 19 20 Item Description Price /Item Quantity Total Price Crew Truck 2012 Ford F-250 Super Duty $40,000 2 $80,000 perform a replacement analysis with the following assumptions 1. Savage value deceases by 11% every year. 2. Manufacturer'swarranty will cover the first 3 years of maintenance. 3. Maintenance will cost 2% of the intial cost in the fourth year and will increase 5% each year thereafter in an geometric gradient. 4. Operating expense for the machinery will be 1.5% of the initia cost for the first year and will increase on a 2% of the intial cost aithentic gradient each year. 5. Assume 7% interest. Init cost Interest Year Sum of PW ELAC of Maintenance Operating cost cash flows PW of Operating Sum of PW EUAC of Operating ELAC Total EUAC of Maintenance PW of Salvage Value Capital Costs Cash Flow Maintenance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 19 20