Question: please use excel and show formulas 1. After a year of lockdown, lives are finally getting back to normal, and you are planning to operate

please use excel and show formulas please use excel and show formulas 1. After a year of lockdown,

1. After a year of lockdown, lives are finally getting back to normal, and you are planning to operate your restaurant at full capacity. You have always had a couple of vending machines in the lobby of your restaurant - dispensing lollipops and small toys. You are thinking about replacing one of them with a new vending machine that will dispense hand sanitizers and masks. There are different kinds of vending machines at different costs, but also different levels of potential profit. You are considering 3 machines. Machine A costs $9,000 and has a 3-year life, during which it will produce an annual cash flow of $4,000 Machine B costs $6,200 and has a 4-year life, during which it will produce an annual cash flow of $2,400. Machine C costs $5,300 and has a 5-year life, during which it will produce an annual cash flow of $1,900. You only have space for one machine. Regardless of which machine you choose, at the end of its life, you will replace it with a new machine of the same kind. That is, you will need this kind of machine for many years to come. Which machine should you choose if the discount rate is 10.5%? (10 points)

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