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Please use excel and show formulas used in excel If done the following it will result in a positive review. One of the four ovens
Please use excel and show formulas used in excel
If done the following it will result in a positive review.
One of the four ovens at a bakery is being considered for replacement. A new oven costs $80,000, but this price includes a complete guarantee covering all maintenance costs for the first 2 years and most maintenance costs for year 3. The salvage value and maintenance costs for the existing and proposed new ovens, respectively are given in the table below. Both ovens are similar in productivity and energy costs. Because of heavy usage, the existing oven has 2 years of life remaining and the new oven has an cxpected useful life of 3 years. The bakery asks you to perform an economic analysis using a MARR of 8% per year. What should the company do? Existing Oven New Oven Time Salvage Value Maintenance Costs Salvage Value Maintenance Costs 0 $20,000 1 $17.000 $9,500 $75,000 $0 2 $14.000 $9,600 $70.000 $0 3 $66.000 $5,000
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