(Solve using Excel only and show your work done in Excel)

Two storage structures, given code names Y and Z, are being considered for a military base. The military uses a 13% per year expected rate of return and a 24-year life for decisions of this type. The relevant characteristics for each structure are shown below.

First Cost	30754	35445
Estimated Life	12 years	24 years
Estimated Salvage Value	None	1800
Annual Maintenance Cost	1000	720

a)What is the future worth of each machine?

b)What is the decision rule for determining the preferred machine based on future worth ranking?

c)Which structure should be recommended?

d)Plot a graph for both alternatives future worth changes with expected ARR (annual rate of return) if expected annual rate of return varies from 13% to 16%