[5 marks] Question 2 Spreadsheet-based evaluation of equal-life, mutually exclusive alternatives can be performed using the single- cell PV function when the annual amount A is the same. The general format to determine the PV is: - K-PV(%,n,A,F) Cesar, a petroleum engineer, has identified two equivalent diesel-powered generators to be purchased for an offshore platform. Use i = 12% per year to determine which is the more economic. AOC, annual operating cost. Generator 1 Generator 2 Initial Cash Outlay K, $ -80,000 -120,000 Salvage Value S, $ 15,000 40,000 n, years 3 3 AOC, $/year -30,000 -8,000 In Excel, follow the format in the above equation, EK - PV(%,n,A,F), in a single cell for each alternative. A. Compute the NPC for each generator. In the assignment that you will be submitting please provide both Excel formulas used to compute each NPC value and the NPC values themselves. [3 marks] B. Which generator is selected and why? [2 marks] [5 marks] Question 2 Spreadsheet-based evaluation of equal-life, mutually exclusive alternatives can be performed using the single- cell PV function when the annual amount A is the same. The general format to determine the PV is: - K-PV(%,n,A,F) Cesar, a petroleum engineer, has identified two equivalent diesel-powered generators to be purchased for an offshore platform. Use i = 12% per year to determine which is the more economic. AOC, annual operating cost. Generator 1 Generator 2 Initial Cash Outlay K, $ -80,000 -120,000 Salvage Value S, $ 15,000 40,000 n, years 3 3 AOC, $/year -30,000 -8,000 In Excel, follow the format in the above equation, EK - PV(%,n,A,F), in a single cell for each alternative. A. Compute the NPC for each generator. In the assignment that you will be submitting please provide both Excel formulas used to compute each NPC value and the NPC values themselves. [3 marks] B. Which generator is selected and why? [2 marks]