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PLEASE WITH EXCEL MICROSOFT PROGRAM!!!!!!! Objective: This activity has the purpose of helping students calculate the benefit - cost ratio of each alternative and select
PLEASE WITH EXCEL MICROSOFT PROGRAM!!!!!!!
Objective: This activity has the purpose of helping students calculate the benefit - cost ratio of each alternative and select the best alternative using the software Microsoft Excel. (Objective 4) Student Instructions: Read example to be used to compute the Benefit - Cost ratio. Textbook problem 10 - 4 (Sullivan W., Wicks E., and Patrick C.), page 468: A retrofitted space- heating system is being considered for a small office building. The system can be purchased and installed for $120,000, and it will save an estimated 300,000 kilowatt-hours (kWh) of electric power each year over a six year period. A kilowatt-hour of electricity costs $0.10, and the company uses a MARR of 15% per year in its economic evaluations of refurbished systems. The market value of the system will be $8,000 at the end of six years, and additional annual operating and maintenance expenses are negligible. Use the benefit - cost method to make a recommendation. 1. Have available the Microsoft Excel software program. 2. Construct a table in the Microsoft Excel work sheet as shown below. The instructions are shown in the second table. Investment = Save = 300000*0.10 MARR = Market value = Factor Annuity $120,000.00 (A/P, 1, n) 0.264236907, 31,708.43 $30,000.00 30,000.00 0.15 $8,000.00 (A/F, 1, n) 0.114236907 913.90 n = Benefit/ cost = 0.974199 3. The construction of the Microsoft Excel sheets and the answered questions has a total grading value of eight (8) points. 4. The deadline for hand in this exercise is indicated at the end of the week of the eleventh module. Steps: 1. Start the Microsoft Excel software program. 2. Use the example data to complete the assignment. Notes: Enter the information exactly as below. Factor $120.000.00l (A/P.In) (E5 (1+ES) E71/((1+E5JAE7-1) =300000*0.1 0.15 $8,000.00 (A/FI,n) =E5/((1+E5)^E7-1) Annuity =E3"G3 30,000.00 Investment = Save = 300000*0.10 MARR Market value = =E6*G6 Benefit/cost = =H4/(H3-H6) (do not forget to write the = sign) To format columns with numbers: right click the mouse in the cell you which to modify, select format cell, and number. The equal (=) sign means that you have an equation and it will compute automatically what is indicated in the cell. a. Write and answer the following questions using the Microsoft Excel spreadsheet. You may copy the questions and write the answer below the table in the Excel sheet. b. TUNCLIO II DIACK DUATU wallach your current and send it to me professor. To use the Attach File enter the Course Content in Black Board. Select the Assignment Module 11, attach the file and submit.ttach FileOnce you have built the Excel tables, with all the changes in different tables, and answered all the questions you have to send the work (Excel sheets and answered questions) to the professor using the A Questions (You only have to write in Excel one of the answers, the one you think is the correct answer to the question) 1. When the MARR is 15% and the life of the heating system asset is 6 years is the alternative acceptable? a. True b. False 2. When the MARR is changed from 15% and the life of the heating system asset is still 6 years is the alternative acceptable? a. True b. False 3. In this problem, if the salvage value is changed from $8,000 to $20,000 is the alternative acceptable? a. Yes b. No 4. In this problem if the life of the heating system asset is changed from 6 years to 10 years, the alternative is a good selection? a. True b. False
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