Please show how you arrive at the answer using Excel (please show steps, or calculations):

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part a:

XYZ Inc. presently is operating amachine that costs $50,000 to run annually. A sales rep has provided some information on a new machine that is more productive and energy efficient. This machine will have a useful life of 7 years, cost $38,000 to purchase, and has $42,500 in annual costs. Should XYZ purchase this new machine ifthediscount rate is 10%?

part b:

ACE Co. is considering the purchase of two machines. Machine A costs $100,000 with annual cost of $20,000. It will last for 5 years, and have a salvage value of $5,000 at the end of 5 years. Machine B costs $145,000 with annual costs of $17,500, and has a usefullife of 8 years. The discount rate is 10%. Which machine should the company buy?