Problem 6.3 spreadsheet section. Thanks!!

PROBLEMS Annual Worth and Capital Recovery Calculations 6.1 After you have conducted a future worth compari- son of alternatives, what do you multiply the FW values by in order to obtain the AW values of the alternatives? 2-year AW value the same as it is for its 3-year life cycle AW? Assume i = 10% per year. Solve using factors and, if assigned, using a spread- sheet and Goal Seek. 6.2 Assume an alternative has a 3-year life and that you calculated its AW value over its 3-year life cycle. If you were asked to provide the AW value of the alternative for a 4-year study period, is the AW value you calculated for the alternative's 3-year life cycle a valid estimate of the AW over the 4-year study period? Why or why not? 6.4 A delivery car had a first cost of $30,000, an an- nual operating cost of $12,000, and an estimated $4000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 2 years and must be sold now as a used vehicle. (a) At an interest rate of 10% per year, what must the market value of the 2-year-old vehicle be in order for its AW value to be the same as the AW for a full 6-year life cycle? (b) Compare your answer in (a) with the first cost and expected salvage after 6 years. Is the required market value a reasonable one, in your opinion? 6.3 ) A machine used to shread cardboard boxes for composting has a first cost of $10,000, an AOC of $7000 per year, a 3-year life, and no apprecia- ble salvage value. Assume you were told that the service provided by the machine will be needed for only 5 years, which entails a repurchase and retention for only 2 years. What salvage value, S, is required after 2 years in order to make the 6.5) As discussed in Section 6.2, either of the following two equations can be applied to determine the