**Show work in Excel with Formula**

solve the following problem:

Wayward Airfreight is considering a new automatic parcel sorter. Each choice has a 7-year life.

• Compute NPW of each alternative.
• Generate an NPW graph with NPW on the Y-axis and interest rate on the X-axis with all alternatives on one graph (see Figure 8-6 for an example).
• Generate an EUAW graph (see Figure 8-5 for an example).
• Construct a choice table for interest rates from 0% - 100%.
• Using a MARR of 15% and a rate of return analysis, which alternative, if any, should be selected?

Figure8.5:

Figure8.6:

ShipR SortOF U SortM First Cost $184,000 $235,000 $180,000 Salvage Value $38,300 $44,000 $14,400 Annual Benefit $75,300 $89,000 $68,000 Yearly O & M Cost $21,000 $21,000 $12,000 D PMT B i 3.1% 3.1% 3.1% 3.1% 3.1% 279 391 E PV -2000 -7000 -4250 n 6 12 8 F. G FV Solve for EUAC Ann. Benefit Benefit - cost 0 PMT 371 650 0 PMT 709 1100 0 PMT 1000 391 Difference in EUAW for Y & Z 0 Difference in EUAW for Z & X 609 112 PMT A 1 Machine 2 X 3 Y 4 Z 5 6 7 8 Machine 9 X 10 Y 11 Z 12 13 14 15 Machine 16 i n 10.8% 6 10.8% 12 10.8% 8 10.8% 10.8% PV -2000 -7000 -4250 FV Solve for EUAC Ann. Benefit Benefit - cost 0 PMT 470 650 180 0 PMT 1068 1100 32 0 PMT 820 1000 180 Difference in EUAW for Y & Z 148 Difference in EUAW for Z & X 0 i n PMT 650 PV -2000 FV Solve for 0 i IRR 23.2% 6 B i 1 2 3 4 5 6 7 A Alternative B D E C-A A - B n 20 20 20 20 20 20 20 D PMT 639 410 761 117 785 122 229 E PV -4000 -2000 -6000 -1000 -9000 -2000 -2000 F FV 0 0 0 0 0 0 0 G Solve for i i i i i i i H Answer 15.0% 20.0% 11.2% 9.9% 6.0% 2.0% 9.6%