Do it on excel!!!

Do it on excel!!!

PROJECT ($280,000) ($10,000) 5 12% $100,000 ($5,000) PROJECT II ($380,000) ($10,000) 5 Initial Cost Salvage Value at EOY5 Project Life (years) MARR (% per year) Benefits ($ per year) Costs ($ per year) Exercise 6.6 at page 103 (MODIFIED) Details for the two project proposals are shown below: Capital Recovery; Simple Payback Period; Internal Rate of Return, IRR; Net Present Worth, NPW; Equivalent Uniform Annual Worth, EUAW; 12% $131,000 ($5,000) If MARR is 12% per year, which alternative is better? WHY? Capital Recovery: Simple Payback Period: $79,248.82 3 Years $106,989.80 4 Years You may write your answer here: Year PROJECT PROJECT II Year 0 0 1 PROJECT CUMULATIVE PW(at 0%) ($280,000) ($185,000) ($90,000) $5,000 1 PROJECT II CUMULATIVE PW(at 0%) ($380,000) ($254,000) ($128,000) ($2,000) $124,000 2 2 3 ($280,000) $95,000 $95,000 $95,000 $95,000 $85,000 20.01% $56,779.47 $15,751.18 ($380,000) $126,000 $126,000 $126,000 $126,000 $116,000 19.13% $68,527.53 $19,010.20 4 3 4 5 5 IRR: NPW (12%) EUAW(12%)