Question: EXCEL ONLY AND PLEASE POST FORMULAS USED AND STEP BY STEP The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement
EXCEL ONLY AND PLEASE POST FORMULAS USED AND STEP BY STEP
The management of Brawn Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in the machine shop. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs (year 0), operating costs, and salvage values over a 5-year planning horizon are shown below (Year 5 includes the salvage value shown in the positive portion) End of Year 0 1 2 3 4 5 Gate 1 -$21,000- (BBB/10) -$5,800 -$5,800 -$5,800 -$5,800 -$5,800+ $3500 Gate 2 -$19,600 -$5,900 -$5,900 -$5,900 -$5,900 -$5,900 + $3000 Gate 3 -$24,500 + (BBB/10) -$4,800 -$4,800 -$4,800 -$4,800 -$4,800 + $4,000 Using an External rate of return analysis with a MARR of AAA +3.5 % per year, determine the preferred gate. (You need to perform the ERR analysis in a step-by-step way)
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