(PLEASE SHOW IN EXCEL)

In Youngblood Enterprises' renovation of a small warehouse, two feasible alternatives for upgrading the heating, ventilation, and air conditioning ( HVAC) system have been identified. Either Alternative A or Alternative B must be implemented. The costs are as follows 9 11 Alternative A Rebuild (overhaul) the existing HVAC system Equipment, labor, and materials to rebuild- $42,000.00 Annual cost of electricity- $25,600.00 Annual maintenance expenses S7,000.00 15 16 Alternative B Install a new HVAC system that utilizes existing ductwork 17 Equipment, labor, and materials to install- $65,500.00 Annual cost of electricity $10,000.00 Annual maintenance expenses - $28,500.00 Replacement of a major component five and ten years hence $19,650.00 20 21 At the end of fifteen years, the estimated market value for Alternative A is $12,000 and for Alternative B it is $25,000. Assume that both alternatives will provide comparable service (comfort) over an fifteen-year period, and assume that the major component replaced in Alternative B will have no market 22 value at EOY fifteen. Using a MARR of 17%, determine the followin 23 Max 24 25 26 27 Use a cash-flow table and end- of- year convention to tabulate the net cash flows 1 for both alternatives 2 Calculate PW(MARR) for Each Alternative 3 Calculate FW(MARR) for Each Alternative 4 Calculate AW(MARR) for Each Alternative 10 10 10 10 Which project should Youngblood Enterprises choose and Why? (Cite the 5 Decision Rule and Page # from the textbook) 10