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please show work on excel Problem 5 16 Points You are selecting equipment for a project. There are two machines under consideration. They will provide
please show work on excel
Problem 5 16 Points You are selecting equipment for a project. There are two machines under consideration. They will provide the same function, but there are difference in cost, benefits, life and other detail Costs, machine prices AND salvage all go up at the rate of inflation. Costs and benefits are shown for year 1. Benefits go up by the % given. Salvage costs are given for an 12 yr old machne A or a 6 yr old machine B TODAY. Adjust with inflation. Help your employer to determine which machine is the best choice. 13.50% 2.980% MARR Inflation Machine A Initial Cost Salvage Life Benefits Benefit inc Costs $ $ $11,500 $ 6,100 12 yr old machine today 12 Years $ 7,100 Per year 3.50% $ 2,972 Per year Machine B Initial Cost Salvage Life Benefits Benefits inc Costs 7,100 2,341 6 yr old machine today 6 Years 6,500 per year 3.90% 2,843 Per year $ $ Create the net cash flow chart for both machines. Deterine the NPW for both machines. Determine the EUAW for both machines. Determine the NFW for both machines. Determine the IRR for both machines Detemine the DELTA IRR. Which machine will you select? Why? Graph the NPW versus MARR chart for both machines (both curves on the same graph) Problem 5 16 Points You are selecting equipment for a project. There are two machines under consideration. They will provide the same function, but there are difference in cost, benefits, life and other detail Costs, machine prices AND salvage all go up at the rate of inflation. Costs and benefits are shown for year 1. Benefits go up by the % given. Salvage costs are given for an 12 yr old machne A or a 6 yr old machine B TODAY. Adjust with inflation. Help your employer to determine which machine is the best choice. 13.50% 2.980% MARR Inflation Machine A Initial Cost Salvage Life Benefits Benefit inc Costs $ $ $11,500 $ 6,100 12 yr old machine today 12 Years $ 7,100 Per year 3.50% $ 2,972 Per year Machine B Initial Cost Salvage Life Benefits Benefits inc Costs 7,100 2,341 6 yr old machine today 6 Years 6,500 per year 3.90% 2,843 Per year $ $ Create the net cash flow chart for both machines. Deterine the NPW for both machines. Determine the EUAW for both machines. Determine the NFW for both machines. Determine the IRR for both machines Detemine the DELTA IRR. Which machine will you select? Why? Graph the NPW versus MARR chart for both machines (both curves on the same graph)Step by Step Solution
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