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Will Rate! PLEASE show how to get each step and number! Here is the question. Please show answer according to my format on excel. Here
Will Rate! PLEASE show how to get each step and number!
Here is the question. Please show answer according to my format on excel.
Here is what I have so far.
P6-8 (L04) (Analysis of Alternatives) Ellison Inc., a manufacturer of steel school lockers, plans to purchase a new punch press for use in its manufacturing process. After contacting the appropriate vendors, the purchasing department received differ- ing terms and options from each vendor. The Engineering Department has determined that each vendor's punch press is sub- stantially identical and each has a useful life of 20 years. In addition, Engineering has estimated that required year-end mainte- nance costs will be $1,000 per year for the first 5 years, $2,000 per year for the next 10 years, and S3,000 per year for the last 5 years. Following is each vendor's sales package. Vendor A: $55,000 cash at time of delivery and 10 year-end payments of $18,000 each. Vendor A offers all its custom- ers the right to purchase at the time of sale a separate 20-year maintenance service contract, under which Vendor A will perform all year-end maintenance at a one-time initial cost of $10,000. Vendor B: Forty semiannual payments of $9,500 each, with the first installment due upon delivery. Vendor B will per- form all year-end maintenance for the next 20 years at no extra charge. Vendor C: Full cash price of $150,000 will be due upon delivery
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