Question: Problem 2: Can you do it on excel Consider a factory that produces light bulbs. The factory has an old piece of equipment, and the

Problem 2: Can you do it on excel Consider a factory that produces light bulbs. The factory has an old piece of equipment, and the factory owner is considering replacing the old equipment with a new machine. The owner is considering two options, with the following details: Machine A Machine B Cost to purchase the machine $50,000.00 $20,000.00 Variable cost per year per light bulb $0.12 $0.20 Fixed cost per year $100,000.00 $25,000.00 Life span (years) 10 10 Number of light bulbs factory will sell per year 600,000 500,000 The factory sells each light bulb for $0.40, the discount rate is 12%, and the corporate tax rate is 36%. The purchase of the machine occurs at year 0 and subsequent cash flows occur from years 1 through 10. Assume straight-line depreciation to zero for both machines. Assume no investment in net working capital. There is no salvage value. The factory needs only one new machine. Which machine should the factory owner buy (using concepts from class)? Additionally, construct a two-way data table to show how the decision variable (NPV) changes for different discount rates and different machine life spans (in years). Do this analysis only for the preferred machine.

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