Question
please draw a graph and follow the steps spreadsheet software like Microsoft Excel or Google Sheets. First, create a new spreadsheet and set up the
please draw a graph and follow the steps
spreadsheet software like Microsoft Excel or Google Sheets.
First, create a new spreadsheet and set up the following columns:
Column A: Interest Rate (0% to 30% in increments, e.g., 1% or 5% increments) Column B: Present Worth A Column C: Present Worth B Column D: Do Nothing (always zero)
In the "Interest Rate" column (column A), list down interest rates from 0% to 30% in increments of your choice (e.g., 1% or 5% increments).
Next, calculate the present worth for each alternative A and B for each interest rate using the formula:
PW = (Uniform annual benefit * (1 - (1 + Interest Rate)^(-Life)) / Interest Rate) - First cost
For each interest rate, fill out the respective present worth in columns B and C. The "Do Nothing" option (column D) will have a present worth of 0 at all interest rates.
Now you can create a graph:
- Select the data in columns A, B, C, and D.
- In Microsoft Excel, go to the "Insert" tab and choose "Scatter" from the "Charts" section. Select "Scatter with Straight Lines" to create a graph. In Google Sheets, go to "Insert" and choose "Chart". In the "Chart type" dropdown, select "Scatter chart".
- Adjust the chart title, axis titles, and legend as needed.
To create the choice table:
- Create a new sheet or a new section in your existing sheet.
- Create columns with the following headers: "Interest Rate Range", "Choice"
- For each interest rate range, determine which alternative has the highest present worth (including the "Do Nothing" option) and enter the corresponding choice in the "Choice" column.
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