Question: Please show the excel formulas. You can continue to use your less efficient old machine with a maintenance cost of $8,000 annually for the next

Please show the excel formulas.

You can continue to use your less efficient old machine with a maintenance cost of $8,000 annually for the next five years (no initial cost). Alternatively, you can purchase a more efficient new machine for $12,000 initial cost today, plus $5,000 annual maintenance cost with the same 5 years life. At a cost of capital of 15%, you should: A. Buy the new machine and save $580 in equivalent annual annuity. B. Keep the old machine and save $480 in equivalent annual annuity. C. Keep the old machine and save $580 in equivalent annual annuity. D. Buy the new machine and save $388 in equivalent annual annuity. E. Keep the old machine and save $388 in equivalent annual annuity

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