Question: Build a spreadsheet to find the EAW of each lawn- mower in Problem 8-29. Use the GOAL SEEK tool of Excel to find the IRR

Build a spreadsheet to find the EAW of each lawn- mower in Problem 8-29. Use the GOAL SEEK tool of Excel to find the IRR of the incremental investment.

Data from 8-29

Don Garlits is a landscaper. He is considering the purchase of a new commercial lawn mower, either, the Atlas or the Zippy. The minimum attractive rate of return is 8%, and the table provides all the necessary information for the two machines.

Atlas Zippy $16,900 1,200 Initial cos! Annual operation and $6700 1500 maintenance cost 4000 Annua! benefit 4,500 1000 3

Atlas Zippy $16,900 1,200 Initial cos! Annual operation and $6700 1500 maintenance cost 4000 Annua! benefit 4,500 1000 3,500 Salvage value Usefu! life, in years

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