solve using Excel please

Alternative A Alternative B Initial costs $236,000 $345,000 Annual operating costs 64,000 38,000 Annual maintenance costs 4,000 5000 Salvage value (EOY 20) 23000 51000 Carry out nominal dollar (actuals) and constant dollar (real) project analyses and demonstrate their equivalence. Homework Problem: a. 14-50. Analyze the problem twice, using both nominal (actual dollar) and real (inflation- adjusted) analysis. Assume the annual cost estimates are for year-0. Assume the MARR of 20% represents the market rate unadjusted for purchasing power. Use Excel for this problem Analyze project two ways: using nominal cash flows (actual $) and real cash flows (constant purchasing power). If you do it correctly, you will get the same answer both ways since they are equivalent (if correctly implemented) . Real analysis: use real cash flows (t=0 purchasing power) and real MARR for discount rate Real MARR = (1 + market MARR)/(1+f) - 1 . Nominal analysis (actual $): build expected inflation into future cash flow projections and use market MARR (actual interest rate which builds in an inflation premium) For example one possibility: Actual CFN = CF. (1+ f)N This projection of CF assumes the cash flows for this project will change by the average expected rate of inflation. If you assume a cash flow for the project under consideration will change at g%, different from the average inflation rate f, then Nominal CFN = CFo(1+g)N And Real CFN = CFo(1+g) N/(1 + f)N Alternative A Alternative B Initial costs $236,000 $345,000 Annual operating costs 64,000 38,000 Annual maintenance costs 4,000 5000 Salvage value (EOY 20) 23000 51000 Carry out nominal dollar (actuals) and constant dollar (real) project analyses and demonstrate their equivalence. Homework Problem: a. 14-50. Analyze the problem twice, using both nominal (actual dollar) and real (inflation- adjusted) analysis. Assume the annual cost estimates are for year-0. Assume the MARR of 20% represents the market rate unadjusted for purchasing power. Use Excel for this problem Analyze project two ways: using nominal cash flows (actual $) and real cash flows (constant purchasing power). If you do it correctly, you will get the same answer both ways since they are equivalent (if correctly implemented) . Real analysis: use real cash flows (t=0 purchasing power) and real MARR for discount rate Real MARR = (1 + market MARR)/(1+f) - 1 . Nominal analysis (actual $): build expected inflation into future cash flow projections and use market MARR (actual interest rate which builds in an inflation premium) For example one possibility: Actual CFN = CF. (1+ f)N This projection of CF assumes the cash flows for this project will change by the average expected rate of inflation. If you assume a cash flow for the project under consideration will change at g%, different from the average inflation rate f, then Nominal CFN = CFo(1+g)N And Real CFN = CFo(1+g) N/(1 + f)N