You have to choose between three semi-trucks for your transportation business. All the trucks will do the job and allow annual earnings of $75,000 each of the estimated 25 years of use. You can buy Model A truck (cost of this is $450,000) that requires the least maintenance, or buy Model B truck (cost of this is $425,000) that requires a little more maintenance, or buy Model C truck (cost of this is $400,000) that requires the most maintenance. Model A truck has to be overhauled in year 10 at a cost of $25,000 but then will last another 20 years without additional maintenance. It will have a salvage value of $50,000 at the end of the project. Model B truck has to be overhauled in year 8 at a cost of $35,000 and every 10 years thereafter at a cost of $25,000 each time and will have a salvage value of $15,000 at the end of the project. Model C truck has to be overhauled in year 4 at a cost of $42,000 and every 8 years thereafter at a cost of $23,000 each time and will have a salvage value of $16,000 at the end of the project.

1. At a discount rate of 6%, what is the NPV of the project when purchasing Model A Truck?

2. At a discount rate of 6%, what is the NPV of the project when purchasing Model B Truck?

3. At a discount rate of 6%, what is the NPV of the project when purchasing Model C Truck?

Please build an excel model and provide excel formulas with explanations for each of the questions. Thanks