The following four mutually exclusive alternatives have no residual value at the end of their useful life of 10 years. Consider that the alternative of doing nothing is a possibility for this project.

(Costo inicial= Initial Cost) (Beneficio anual uniforme= Uniform annual profit)

a) Build a table in Excel of present value for interests between 0 and 20%, using the VP function of excel. (send screen shot of table)

b) Plot the present value curves for each alternative using Excel. (send screen shot of graph)

c) Use the graph to identify the intersection points of the alternatives that maximize present value.

d) Use incremental analysis and the Excel RATE or IRR function to determine the values of the intersection points. (With the spreadsheet send screen shot of Excel work or list of data entered to the function)

e) Use the IRR results to construct an alternative selection table, for interest rates from 0 to 20%.

Fill in the blanks:

If MARR (Answer )%, choose alternative (Answer)

(lyrics).

Yes (Answer) % MARR8%, choose alternative (Answer) (lyrics).

If MARR8%, choose alternative no

A B D Costo inicial $20,000 $26,000 $66,000 Beneficio anual uniforme $40,000 4,748 2,638 3,878 9.155 A B D Costo inicial $20,000 $26,000 $66,000 Beneficio anual uniforme $40,000 4,748 2,638 3,878 9.155