DATA BLOCK AND ANALYSES FORMATS: An Excel #2 template has been posted also with the following format illustrated below for your data block page and the analysis report. The template posted for Excel #2 uses the format illustrated on the following page for your total cost approach analysis: Do not include a 'Factor' column as is shown in the power point slides since excel will calculate that for you. Under the 'year(s)' column, use '0' where there would be a 'Now', since no time has passed from now. Be sure to input the year(s) or period(s) in your data block so you can cell reference them to your spreadsheet formulas. Under the "year(s)" or "periods" column, for the annuity (annual cash operating costs), use the total number of years for the annuity instead of the range. For example, instead of showing the range '1-5', you will use '5' in your spreadsheet. To calculate present value, use excel formula function (PV) and NOT the tables in the textbook. See below for instructions on how to use the PV function in excel. Use borders for your column headings and data underlines. Double underlines for Net Present Value solution. The Excel #2 template posted uses the following format for your incremental cost analysis:

Bilboa Freightlines, S.A, of Panama, has a small truck that it uses for Intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following Information: Biboa Freightlines, 5.A Present New Total Cost Approach Truck Truck $ 10,030 Net Present Value Calculation purchase cost (men) 71,090 Remaining book vala 11,500 Amount of Overhaul needed now Year() Cash Flows PV Ammual cesh op 5 10,009 5 6,500 Overhaul old truck Salvage value-now Overhaul now Salvage value-five years from now 4,090 Annual cash operating costs Balvage value In five years Net Present Value If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, It will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated. Purchase new truck: resulting in a substantial reduction in annual operating costs, as shown above. Purchase cost new Salvage value of old truck now The company computes depreciation on a straight-line basis. All investment projects are atusted using a 16% discount rate. Annual cash operating costs Salvage value of new truck in five years Net Present Value Logic IF statement in this call A20 Data Block Bibon Freightlines, S.A Bilboa Freightlines Incremental Cost Approach Net Present Value Calculation 16% Amount of Required Rate of Return Years Cash Flows PV Incremental investment - in favor of old truck Present New Yearl Additional annual cash operating costs Truck Truck Periods Lost salvage value in five years Lost salvage value for old truck now Purchase cost new Logic IF statement in this call A32 Overhaul needed now Annual cash operating costs Salvage value now . REQUIRED COMPONETS: Salvage value five years from now . Two Logic "IF" statements MUST be used to label the Decision as being in favor of overhauling the old truck or in favor of purchasing the new truck. One Logic IF for the Total Cost Approach and one Logic IF for the Incremental Cost Approach. This is a required component for this assignment. If you do not complete both Logic IF stmts, you will not receive credit for this assignment. . Excel's PV function must be used to calculate the present value of the cash flows. Do not use the factor tables as is illustrated in the text. . A data block and cell referencing is required. Biboa Freightlines, S.A Total Cost Approach . There is NO What IF part to this assignment. Net Present Value Calculation Amount of Yearo) Cash Flow PV Overhaul old truck Overhaul nowBilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information: -0 Present Truck Truck purchase cost (new) $ 21,000 $ 30,000 Remaining book value $ 11,560 Overhaul needed now $ 7,000 Annual cash operating costs $ 10,000 $ 6,500 pa Salvage value-now $ 9, BOG Salvage value-five years from now $ 1,000 $ 4,000 If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded In on another truck. The new truck would be diesel-operated, D resulting In a substantial reduction in annual operating costs, as shown above. The company computes depreciation on a straight-line basis. All Investment projects are evaluated using a 16% discount rate.Briboa Freightines, S.A Total Cost Approach Net Present Value Calculation Amount of Item Year(s) Cash Flows PV Overhaul old truck: Overhaul now Annual cash operating costs Salvage value in five years Net Present Value Purchase new truck Purchase cost new Salvage value of old truck now Annual cash operating costs Salvage value of new truck in five years Net Present Value Logic IF statement in this cell A20 Biboa Freightlines, S.A. Incremental Cost Approach Net Present Value Calculation Amount of Item Year(s) Cash Flows PV Incremental investment . in favor of old truck Additional annual cash operating costs Lost salvage value in five years Lost salvage value for old truck now Logic IF statement in this cell A32Data Block Bilboa Freightlines Required Rate of Return 16% Present New Year/ Truck Truck Periods Purchase cost new Overhaul needed now Annual cash operating costs Salvage value now Salvage value five years from now