3. Please, solve the following exercises about the Total Cost of Ownership (TCO) theory (12 points): You are the Procurement Agency of your country and you should evaluate which of the following 3 investments (projects) can be more economically viable for your entity Project 2 - 15,000 (CapEx) ime Project 1 - 10,000 (CapEx) 1- 2,000 (OpEx) 2 32,000 42,000 5 2,000 6 7 1,000 (OpEx) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 2,000 10 12 Project 1 lasts 5 years, Project 2 lasts 8 years and Project 2 lasts 12 years Please: a. Calculate the Total Cost of Ownership (TCO) or Net Present Value (NPV) of the investment using 1% as a discount rate b. Make a ranking of the investments (i.e., which is the most feasible) and evaluate which project is better according to the NPV theory If the interest rate becomes equal to 3%, ie., how does change the previous ranking? (Scenario analysis) c. N.B. Please, use spreadsheet and deliver also the Excel file 3. Please, solve the following exercises about the Total Cost of Ownership (TCO) theory (12 points): You are the Procurement Agency of your country and you should evaluate which of the following 3 investments (projects) can be more economically viable for your entity Project 2 - 15,000 (CapEx) ime Project 1 - 10,000 (CapEx) 1- 2,000 (OpEx) 2 32,000 42,000 5 2,000 6 7 1,000 (OpEx) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 2,000 10 12 Project 1 lasts 5 years, Project 2 lasts 8 years and Project 2 lasts 12 years Please: a. Calculate the Total Cost of Ownership (TCO) or Net Present Value (NPV) of the investment using 1% as a discount rate b. Make a ranking of the investments (i.e., which is the most feasible) and evaluate which project is better according to the NPV theory If the interest rate becomes equal to 3%, ie., how does change the previous ranking? (Scenario analysis) c. N.B. Please, use spreadsheet and deliver also the Excel file