Please show solution in a spreadsheet. Thanks in advance!

Leonard Motors is trying to increase its international export business. It is considering several alternatives. Two were available earlier (per Problem 5.11), but a new one has recently been proposed by a potential internationally partnering corporation, which has funds to invest.

Option 1: Equipment costs $900,000 now and another $560,000 in 2 years Annual M&O costs of $79,000 Life of project is 10 years Salvage value is nil Option 2: Subcontract production for annual payment of $280,000 for years 0 (now) through 10 Annual M&O cost is zero Life of project is 10 years Salvage value is nil Option 3: Costs are $400,000 in year 1 plus an additional 5% each year through year 5 Revenues are $50,000 per year for years 6 through 10 Life of project is 10 years Equipment salvage value is $100,000 paid in year 10 by international partner Due to stock market pressures, Leonard plans to change its MARR from its current 20% per year to 15% per year, compounded quarterly. Use PW analysis to select the best of the three options

EXERCISES FOR SPREADSHEETS 5.42 Leonard Motors is trying to increase its international export business. It is considering several alterna- tives. Two were available earlier (per Problem 5.11), but a new one has recently been proposed by a po- tential internationally partnering corporation, which has funds to invest. Annual M&O cost is zero Life of project is 10 years Salvage value is nil Option 3: Costs are $400,000 in year 1 plus an ad ditional 5% each year through year 5 Revenues are $50,000 per year for years 6 through 10 Life of project is 10 years Equipment salvage value is $100,000 paid in year 10 by international partner Option 1: Equipment costs $900,000 now and an other $560,000 in 2 years Annual M&O costs of $79,000 Life of project is 10 years Salvage value is nil Due to stock market pressures, Leonard plans to change its MARR from its current 20% per year to 15% analysis to select the best of the three options. Option 2: Subcontract production for annual pay per year, compounded quarterly. Use PW ment of $280,000 for years 0 (now) through 10