Question: Kindly solve it using Ms Excel ..Thanks Question 1 A. Using Ms Excel , find out which alternative should be selected on the basis of

 Kindly solve it using Ms Excel ..Thanks Question 1 A. Using

Kindly solve it using Ms Excel ..Thanks

Question 1 A. Using Ms Excel , find out which alternative should be selected on the basis of the Present Worth method, if the rate of interest is 8% per year. Alternative 1: Initial purchase price = $2500000, Annual operating cost $45000 at the end of 1st year and increasing by $3000 in the subsequent years till the end of useful life, Annual income = $120000, Salvage value = $550000, Useful life = 3 years. Alternative 2: Initial purchase price = $3000000, Annual operating cost = $30000, Annual income $150000 for first three years and increasing by $5000 in the subsequent years till the end of useful life, Salvage value = $800000, Useful life = 6 years. Alternative 3: Initial purchase price = $2700000, Annual operating cost $35000 for first 5 years and increasing by $2000 in the successive years till the end of useful life, Annual income = $140000, Expected salvage value = $650000, Useful life = 9 years. B. Using Ms Excel , Compare the previuos alternatives in Question 1 on the basis of the future worth analysis, would the the most economical one at the interest rate of 8 % per year be different to the answer in Q1-A?. C. Using Ms Excel , find the the best Equivalent Annuity Cash Flow of the most economical one at the interest rate of 8 % per year. D. Draw by your hand Cash flow diagram. E. Write the standard notation of each solution above

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