Please see answer below Can someone please explain how to get the answer with excel Company C is seeking for help to decide this option to choose to upgrade their current bottleneck equipment There are two vendors and one rental option The cost details are shown in the table below Option Vender R Vender T Rental Initial Cost 75000 125000 0 Annual Operation Cost 28000 12000 52000 Salvage Value 0 30000 0 Estimated Life in Year 2 3 Maximum 3 years MARR 10 per year compounded monthly Select from the two sales vendors using the AW analysis Determine which of the three options is cheaper over a 3 year study period P3 PP Year CP Month Time Window Year Year R T PMT ($71,487 79) ($53,659 67) Winner 2 T vs Rental T Rental PMT ($71,487 79) AW $ (52,000 00) Winner

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Question: Please see answer below. Can someone please explain how to get the answer with excel? Company C is seeking for help to decide this option

Please see answer below. Can someone please explain how to get the answer with excel?

Company C is seeking for help to decide this option to choose to upgrade their current bottleneck equipment. There are two vendors and one rental option. The cost details are shown in the table below.

Option	Vender R	Vender T	Rental
Initial Cost	75000	125000	0
Annual Operation Cost	28000	12000	52000
Salvage Value	0	30000	0
Estimated Life in Year	2	3	Maximum 3 years

MARR = 10% per year compounded monthly.

Select from the two sales vendors using the AW analysis.
Determine which of the three options is cheaper over a 3-year study period.

P3
PP - Year
CP- Month
Time Window - Year
Year	R	T
PMT	($71,487.79)	($53,659.67)
		Winner

2	T vs. Rental
	T	Rental
PMT	($71,487.79)	AW=	$ (52,000.00)
			Winner

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