You want to buy new battery-powered sports Bike. You can buy a more expensive one (Model Exp) or cheaper one (Model Cheap) (but shorter-lived) one. Model Exp. costs $25,000 and has an anticipated life of 8 years. Its expected cost per mile is $0.5. Model Cheap costs $15,000, has an anticipated life of 6 years, and its expected cost per mile is $0.9. Model Exp has a market value of $5000 at the end of its life (8 years later) and Model Cheap will cost you $300 to dispose it at the end of its life. Regardless which model you will buy, you will run it for 500 miles per year.

1. Fill the Cells marked in yellow with correct amount of cost numbers (in negative) (2 points)
2. Compute NPV, PV, and EAC in cells marked green (2 points)
3. Briefly explain which model to choose and why. (1 point)

AutoSave OFF OFF AS Excel 1 -Saved to my Mac Home Insert Draw Page Layout Formulas Data Review View Developer Share Comments 21 17 Show Detail HE 3. Connections Properties A Edit Links Clear Reply Advanced Geography From From New Database HTML Text Query Graua Refresh AI 2 Sort Filter Text ta Flash Columns Fill kerrave Data Consalidate Duplicates Validation What if Analysis Urgroup Subtatal Hide Detail Data Analysis Check for Updates Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. AZZ fx Annual useage costs A B F F G H 1 . M N N P R T w For costs, please use CF. For revenue or intons please use +CF 2 4 5 5 7 B 1 5. Choosing Your Battery-Powered Sports Bike 2 Discourt rate 10' 3 Mlas per year 500 4 5 Modell Exp Model Cheap 8 Scruen post $25,000.00 $15.000.00 7 Life spen E Cost parmio SA 50 3090 9 Bire's disposal Vale 5.000 300 10 11 Model Exp 0 1 1 12 Investment purchase coat) -25,000 13 Annual usage Cost 14 Salvage value at end of life 15 Total costs per year 16 NPY 17 10 EAC 19 20 Model Cheap 0 1 21 Investment concert COMIS -15.000 22 Annual usoago Boss 23 Salvage value (end of Inc 24 Total al naar 25 2e PV 27 EAC - 28 29 Explain how you wil decide which model to chocee 30 1 21 32 99 34 2. 3 4 5 6 NPY 36 97 38 35 40 41 42 43 45 46 47 Probem1 temp Problem2 tomp Problem3_tomp Problem4 temp Problem temp + Count: 3 : --+ 100% AutoSave OFF OFF AS Excel 1 -Saved to my Mac Home Insert Draw Page Layout Formulas Data Review View Developer Share Comments 21 17 Show Detail HE 3. Connections Properties A Edit Links Clear Reply Advanced Geography From From New Database HTML Text Query Graua Refresh AI 2 Sort Filter Text ta Flash Columns Fill kerrave Data Consalidate Duplicates Validation What if Analysis Urgroup Subtatal Hide Detail Data Analysis Check for Updates Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. AZZ fx Annual useage costs A B F F G H 1 . M N N P R T w For costs, please use CF. For revenue or intons please use +CF 2 4 5 5 7 B 1 5. Choosing Your Battery-Powered Sports Bike 2 Discourt rate 10' 3 Mlas per year 500 4 5 Modell Exp Model Cheap 8 Scruen post $25,000.00 $15.000.00 7 Life spen E Cost parmio SA 50 3090 9 Bire's disposal Vale 5.000 300 10 11 Model Exp 0 1 1 12 Investment purchase coat) -25,000 13 Annual usage Cost 14 Salvage value at end of life 15 Total costs per year 16 NPY 17 10 EAC 19 20 Model Cheap 0 1 21 Investment concert COMIS -15.000 22 Annual usoago Boss 23 Salvage value (end of Inc 24 Total al naar 25 2e PV 27 EAC - 28 29 Explain how you wil decide which model to chocee 30 1 21 32 99 34 2. 3 4 5 6 NPY 36 97 38 35 40 41 42 43 45 46 47 Probem1 temp Problem2 tomp Problem3_tomp Problem4 temp Problem temp + Count: 3 : --+ 100%