Question: Please help and show all work with clear writing please. thanks. In addition Use Excel to determine what initial cost of Alternative A in Problem
Please help and show all work with clear writing please. thanks. In addition Use Excel to determine what initial cost of Alternative A in Problem 4.2 would make the two systems equal at an MARR of 8%.

In addition Use Excel to determine what initial cost of Alternative A in Problem 4.2 would make the two systems equal at an MARR of 8%.
4.2. A natural gas producing company is considering two engine systems for use in driving a small compressor. System A can be purchased for $120,000 and is expected to have a life of 4 years. Annual diesel fuel consumption is estimated to be 60 gallons per day of use. System B can be purchased for $150,000 and is expected to have a life of 4 years. Annual propane fuel consumption is estimated to be 40 gallons per day of use. Both engines have salvage values equal to 15% of initial cost and both will accomplish the needed requirements. Estimates of fuel costs for each system and expected days of use each year are as follows: Year Estimated days of use 1 200 2 250 3 200 4 150 Fuel cost, $/gallon System A System B $0.55 $0.65 $0.60 $0.65 $0.65 $0.70 $0.65 $0.70 Assume that MARR is 8% and that all other costs besides fuel will be the same for both systems. Which system is the best economic choiceStep by Step Solution
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