Write a report based on the result of the evaluation techniques and explain why you prefer business case 1 or business case 2.

F: Returns on InvestmentROI and ROI-D, and AW (ROI)

Please solve this problem i will like your affort . thank you

Business Case 1 (part 1) Calculations for initial values of Revenues & Expenses Revenue Stream nt Amoun Start Year Start Year End Year none 1 Description 1 Uniform Series 2 Escalation Gradient 3 Std. Uniform Gradient 4 Geometric Gradient 5 Uniform Ramp Gradient 6 Escalation Gradient Initial Amoun t 6,500 3,200 2,300 7.900 2,200 2,300 1 Expense Stream Description 1 Uniform Series 2 Uniform Ramp Gradi 3 Escalation Gradient 4 Geometric Gradient 5 Std Uniform Gradion End Year 1 10 11 10 10 11 11 9 11 10 14% 2,050 11% 2,600 17% Initial nt Amoun Amoun t 5.900 none 800 1001 3,700 15% 2,200 7% 2,500 1,600 7 1 3 10 10 4 Revenues Rev 3 Rev 4 Rev Rev 5 Rev 6 Totals Year Year 0 Exp 1 Expense Exp 2 Exp 3 0 0 Exp 4 Totals Rev 2 0 Exp 5 0 0 0 0 0 0 0 0 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 Total 10 Total Total Revenue in 10 years : Total Expende in 10 years = Business Case 2 (part 1) Calculations for initial values of Revenues & Expenses Revenue Stream Initial Amoun nt Amoun Start Year Start Year End Year End Year 7 10 nonc 1 1 9 1 1 Initial nt Expense Amoun Amoun Stream Description t 1 Uniform Series 6,300 none 2 Uniform Ramp Gradi 1,200 700 3 Escalation Gradient 3,100 23% 4 Geometric Gradient 1,700 87 5 Std Uniform Gradient 2,000 1,850 Description 1 Uniform Scrics 2 Escalation Gradient 3 Std. Uniform Gradient 4 Geometric Gradient 5 Uniform Ramp Gradient 6 Escalation Gradient 6 2 1 5,600 7,200 2,400 8,800 1,900 4,300 10 1 10 1,550 9% 1,860 133 1 10 9 10 4 10 Rev 1 Rev 2 0 Revenue Rev 3 Rev 4 0 Year 0 Rev 5 0 Totals Rev 6 0 Year 0 Totals Exp 1 0 Expende Exp 2 Exp3 0 Exp 4 0 Exp 51 0 0 1 1 3 4 5 4 5 6 6 7 7 9 10 Total 9 10 Total Total Revenue in 10 years Total Expense in 10 years Part 2: (30% marks; deliverable: spreadsheet) First construct two tables similar to table 12.1 or 12.2 for business case 1 and business case 2. Prepare the tables in excel and make the tables as dynamic as possible by using formulas for each of the cells. Additional information: Tax Rate: 30% Discount Rate: 8% Business Case 1 Required Investment: $105,000 Depreciation: MACRS-GDS for a 5-year property class Required Loan: $82,000 (at 7.5% interest rate) Loan Period: 5 years Business Case 2 Required Investment: $96,500 Depreciation: MACRS-GDS for a 7-year property class Required Loan: $59,000 (at 8% interest rate) Loan Period: 7 years Part 3: (40% marks; deliverable: project report) Use the following techniques to evaluate two business cases and select the best one: a. Payback Period in years. b. Discounted Payback Period in years. c. Present Worth of the net profits. d. Future Worth of the net profits. e. Average Annual Worth of the net profits. Returne on Invoetmont_ROLand ROLD and AW ROD f Business Case 2: Revenue Stream Start Year End Year 1 7 10 1 Description 1 Uniform Series 2 Escalation Gradient 3 Std. Uniform Gradient 4 Geometric Gradient 5 Uniform Ramp Gradient 6 Escalation Gradient Initial Gradient Amount Amount 5,600 none 7,200 4% 2,400 2,400 8,800 9% 1,900 1,900 4,300 13% 2 8 1 10 1 9 3 10 End Year 9 Expense Stream Description 1 Uniform Series 2 Uniform Ramp Gradient 3 Escalation Gradient 4 Geometric Gradient 5 Std Uniform Gradient Initial Gradient Start Amount Amount Year 6,300 none 1,200 1,200 3,100 23% 1 1,700 8% 3 2,000 2,000 4 1 1 6 10 10 10 Part 1: (30% marks; deliverable: spreadsheet) You have two potential investment opportunities: Business Case 1 and Business Case 2. Your objective is to apply engineering economy formulas to pick the best investment between the two business cases. As the first part of the analysis, you need to determine the total revenues and the total expenses for each year given the following revenues and expenses for Business Case 1 and Business Case 2. Arrange data in column formation with revenues and expenses as title and years data 0-10 and Totals for each column. [Part 1 is due on July 28, 11AM] Business Case 1: Revenue Stream Start Year End Year none 1 10 1 10 Description 1 Uniform Series 2 Escalation Gradient 3 Std. Uniform Gradient 4 Geometric Gradient 5 Uniform Ramp Gradient 6 Escalation Gradient Initial Gradient Amount Amount 6,500 3,200 14% 2,300 2,300 7,900 11% 2,600 2,600 2,900 17% 3 10 8 1 1 9 1 10 End Year 1 9 Expense Stream Description 1 Uniform Series 2 Uniform Ramp Gradient 3 Escalation Gradient 4 Geometric Gradient 5 Std Uniform Gradient Initial Gradient Start Amount Amount Year 5,900 none 800 800 3,700 15% 1 2,200 7% 3 2,500 2,500 4 8 7 10 10 Business Case 1 (part 1) Calculations for initial values of Revenues & Expenses Revenue Stream nt Amoun Start Year Start Year End Year none 1 Description 1 Uniform Series 2 Escalation Gradient 3 Std. Uniform Gradient 4 Geometric Gradient 5 Uniform Ramp Gradient 6 Escalation Gradient Initial Amoun t 6,500 3,200 2,300 7.900 2,200 2,300 1 Expense Stream Description 1 Uniform Series 2 Uniform Ramp Gradi 3 Escalation Gradient 4 Geometric Gradient 5 Std Uniform Gradion End Year 1 10 11 10 10 11 11 9 11 10 14% 2,050 11% 2,600 17% Initial nt Amoun Amoun t 5.900 none 800 1001 3,700 15% 2,200 7% 2,500 1,600 7 1 3 10 10 4 Revenues Rev 3 Rev 4 Rev Rev 5 Rev 6 Totals Year Year 0 Exp 1 Expense Exp 2 Exp 3 0 0 Exp 4 Totals Rev 2 0 Exp 5 0 0 0 0 0 0 0 0 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 Total 10 Total Total Revenue in 10 years : Total Expende in 10 years = Business Case 2 (part 1) Calculations for initial values of Revenues & Expenses Revenue Stream Initial Amoun nt Amoun Start Year Start Year End Year End Year 7 10 nonc 1 1 9 1 1 Initial nt Expense Amoun Amoun Stream Description t 1 Uniform Series 6,300 none 2 Uniform Ramp Gradi 1,200 700 3 Escalation Gradient 3,100 23% 4 Geometric Gradient 1,700 87 5 Std Uniform Gradient 2,000 1,850 Description 1 Uniform Scrics 2 Escalation Gradient 3 Std. Uniform Gradient 4 Geometric Gradient 5 Uniform Ramp Gradient 6 Escalation Gradient 6 2 1 5,600 7,200 2,400 8,800 1,900 4,300 10 1 10 1,550 9% 1,860 133 1 10 9 10 4 10 Rev 1 Rev 2 0 Revenue Rev 3 Rev 4 0 Year 0 Rev 5 0 Totals Rev 6 0 Year 0 Totals Exp 1 0 Expende Exp 2 Exp3 0 Exp 4 0 Exp 51 0 0 1 1 3 4 5 4 5 6 6 7 7 9 10 Total 9 10 Total Total Revenue in 10 years Total Expense in 10 years Part 2: (30% marks; deliverable: spreadsheet) First construct two tables similar to table 12.1 or 12.2 for business case 1 and business case 2. Prepare the tables in excel and make the tables as dynamic as possible by using formulas for each of the cells. Additional information: Tax Rate: 30% Discount Rate: 8% Business Case 1 Required Investment: $105,000 Depreciation: MACRS-GDS for a 5-year property class Required Loan: $82,000 (at 7.5% interest rate) Loan Period: 5 years Business Case 2 Required Investment: $96,500 Depreciation: MACRS-GDS for a 7-year property class Required Loan: $59,000 (at 8% interest rate) Loan Period: 7 years Part 3: (40% marks; deliverable: project report) Use the following techniques to evaluate two business cases and select the best one: a. Payback Period in years. b. Discounted Payback Period in years. c. Present Worth of the net profits. d. Future Worth of the net profits. e. Average Annual Worth of the net profits. Returne on Invoetmont_ROLand ROLD and AW ROD f Business Case 2: Revenue Stream Start Year End Year 1 7 10 1 Description 1 Uniform Series 2 Escalation Gradient 3 Std. Uniform Gradient 4 Geometric Gradient 5 Uniform Ramp Gradient 6 Escalation Gradient Initial Gradient Amount Amount 5,600 none 7,200 4% 2,400 2,400 8,800 9% 1,900 1,900 4,300 13% 2 8 1 10 1 9 3 10 End Year 9 Expense Stream Description 1 Uniform Series 2 Uniform Ramp Gradient 3 Escalation Gradient 4 Geometric Gradient 5 Std Uniform Gradient Initial Gradient Start Amount Amount Year 6,300 none 1,200 1,200 3,100 23% 1 1,700 8% 3 2,000 2,000 4 1 1 6 10 10 10 Part 1: (30% marks; deliverable: spreadsheet) You have two potential investment opportunities: Business Case 1 and Business Case 2. Your objective is to apply engineering economy formulas to pick the best investment between the two business cases. As the first part of the analysis, you need to determine the total revenues and the total expenses for each year given the following revenues and expenses for Business Case 1 and Business Case 2. Arrange data in column formation with revenues and expenses as title and years data 0-10 and Totals for each column. [Part 1 is due on July 28, 11AM] Business Case 1: Revenue Stream Start Year End Year none 1 10 1 10 Description 1 Uniform Series 2 Escalation Gradient 3 Std. Uniform Gradient 4 Geometric Gradient 5 Uniform Ramp Gradient 6 Escalation Gradient Initial Gradient Amount Amount 6,500 3,200 14% 2,300 2,300 7,900 11% 2,600 2,600 2,900 17% 3 10 8 1 1 9 1 10 End Year 1 9 Expense Stream Description 1 Uniform Series 2 Uniform Ramp Gradient 3 Escalation Gradient 4 Geometric Gradient 5 Std Uniform Gradient Initial Gradient Start Amount Amount Year 5,900 none 800 800 3,700 15% 1 2,200 7% 3 2,500 2,500 4 8 7 10 10