Question: the question is on page 1, and i need help filling in the excel page on page 2. if you could tell me how you
the question is on page 1, and i need help filling in the excel page on page 2. if you could tell me how you got your answers, that would help. thanks


Diesel $101,335 345 hp 310 hp Table 1: Boat specifications Gasoline Purchase price $124,200 Engine size (horsepower) Average speed (manufacturer's estimate) Knots (nautical miles per hour) 24.6 Fuel consumption (gallons per hour) 29 Fuel capacity (gallons) 325 21.2 21 325 As shown in Table 1, the boat manufac rer has provided an estimate of the average speed of each unit and the fuel consumption based on this average speed. Since the boats deliver packages over fairly short distances, the higher speed of the gasoline engine is only valued at $50 per day. The delivery service operates 19 hours per day, 365 days per year. During these 19 hours, the gasoline engines will be turned off while not in use, but the diesel units will idle and burn fuel at the rate of 2 gallons per hour if they are not in use. Both units are turned off during the 5 hours the delivery service is not operational. Both units can meet the schedules and requirements of DBW. The diesel unit requires more maintenance than the gasoline engine unit due to the diesel unit's cooling system. Annual maintenance costs are $7,500 for the diesel engine and only $6,000 for the gasoline engine. The cost of oil changes is $51 for the diesel unit and $29 for the gasoline unit. Oil changes occur every 120 hours of engine use for both types of engines. Idling hours do NOT count towards the 120 hours of engine use. Diesel is estimated to run $3.17 per gallon while gasoline runs $2.97 per gallon. The boats will typically travel 275 nautical miles in the course of the day. Each branch office is located adjacent to a fueling dock run by another business unit of DBW's parent company. Refueling costs more during the day (i.e., while the delivery service is in operation), and DBW prefers to refuel each boat every evening when the delivery service is not operating. The boats are docked at the fueling facility overnight, and each evening the tanks are refilled to capacity whether or not the boat was refueled during the day. Since a boat's fuel capacity is capped at 325 gallons, if a boat uses more than 325 gallons during the day, then the boat will need to be refueled during the day. In addition to the price of the fuel, refueling during the evening costs $20. If refueling must be done during the day, it costs $53. The gasoline units, if purchased, will be sold after 5 years of service for $32,000 each. The diesel units, if purchased, will be kept in service for 4 years before salvaged for $48,000 each. You can assume that each type of unit can be purchased at the same costs in the future. DBW's minimum attractive rate of return (MARR) is 20%. DBW suspects that the number of nautical miles per day may change in the future and is interested in knowing how many nautical miles per day must be traveled to change the preferred alternative. B D E F 1 INPUTS 2. Gasoline Diesel 3 Purchase price $124,200 $101,335 4 Engine size (horsepower) 345 hp 310 hp 5 Average speed (manufacturer's estimate) 6 Knots (nautical miles per hour) 24.6 21.2 7 Fuel consumption (gallons per hour) 29 21 8 Fuel capacity (gallons) 325 325 9 10 Note: rows 11-23 are inputs that you should select from the instructions 11 Value of higher speed 12 Fuel idle per rate (gallons per hour) 13 Insurance premium 14 Annual maintenance 15 Cost oil change 16 Frequency of oil changes (hours) 17 Cost of fuel ($ per gallon) 18 Cost of refueling at night 19 Cost of refueling at day 20 Nautical miles per day 21 Operations of company (hours per day) 22 Salvage 23 Years of service 24 MARR 25 26 CALCUALTIONS 27 Hours that a boat operates per day 28 Hours that a boat is idle per day 29 Fuel used per day (gallons) 30 Number of oil changes per year 31 32 COST CALCULATIONS 33 Annual value of higher speed 34 Annual cost of oil changes 35 Annual cost of refueling 36 Annual cost of fuel 37 38 Note: you will need to calculate other costs in addition to those listed. Please enter those into the spreadsheet 39 Diesel $101,335 345 hp 310 hp Table 1: Boat specifications Gasoline Purchase price $124,200 Engine size (horsepower) Average speed (manufacturer's estimate) Knots (nautical miles per hour) 24.6 Fuel consumption (gallons per hour) 29 Fuel capacity (gallons) 325 21.2 21 325 As shown in Table 1, the boat manufac rer has provided an estimate of the average speed of each unit and the fuel consumption based on this average speed. Since the boats deliver packages over fairly short distances, the higher speed of the gasoline engine is only valued at $50 per day. The delivery service operates 19 hours per day, 365 days per year. During these 19 hours, the gasoline engines will be turned off while not in use, but the diesel units will idle and burn fuel at the rate of 2 gallons per hour if they are not in use. Both units are turned off during the 5 hours the delivery service is not operational. Both units can meet the schedules and requirements of DBW. The diesel unit requires more maintenance than the gasoline engine unit due to the diesel unit's cooling system. Annual maintenance costs are $7,500 for the diesel engine and only $6,000 for the gasoline engine. The cost of oil changes is $51 for the diesel unit and $29 for the gasoline unit. Oil changes occur every 120 hours of engine use for both types of engines. Idling hours do NOT count towards the 120 hours of engine use. Diesel is estimated to run $3.17 per gallon while gasoline runs $2.97 per gallon. The boats will typically travel 275 nautical miles in the course of the day. Each branch office is located adjacent to a fueling dock run by another business unit of DBW's parent company. Refueling costs more during the day (i.e., while the delivery service is in operation), and DBW prefers to refuel each boat every evening when the delivery service is not operating. The boats are docked at the fueling facility overnight, and each evening the tanks are refilled to capacity whether or not the boat was refueled during the day. Since a boat's fuel capacity is capped at 325 gallons, if a boat uses more than 325 gallons during the day, then the boat will need to be refueled during the day. In addition to the price of the fuel, refueling during the evening costs $20. If refueling must be done during the day, it costs $53. The gasoline units, if purchased, will be sold after 5 years of service for $32,000 each. The diesel units, if purchased, will be kept in service for 4 years before salvaged for $48,000 each. You can assume that each type of unit can be purchased at the same costs in the future. DBW's minimum attractive rate of return (MARR) is 20%. DBW suspects that the number of nautical miles per day may change in the future and is interested in knowing how many nautical miles per day must be traveled to change the preferred alternative. B D E F 1 INPUTS 2. Gasoline Diesel 3 Purchase price $124,200 $101,335 4 Engine size (horsepower) 345 hp 310 hp 5 Average speed (manufacturer's estimate) 6 Knots (nautical miles per hour) 24.6 21.2 7 Fuel consumption (gallons per hour) 29 21 8 Fuel capacity (gallons) 325 325 9 10 Note: rows 11-23 are inputs that you should select from the instructions 11 Value of higher speed 12 Fuel idle per rate (gallons per hour) 13 Insurance premium 14 Annual maintenance 15 Cost oil change 16 Frequency of oil changes (hours) 17 Cost of fuel ($ per gallon) 18 Cost of refueling at night 19 Cost of refueling at day 20 Nautical miles per day 21 Operations of company (hours per day) 22 Salvage 23 Years of service 24 MARR 25 26 CALCUALTIONS 27 Hours that a boat operates per day 28 Hours that a boat is idle per day 29 Fuel used per day (gallons) 30 Number of oil changes per year 31 32 COST CALCULATIONS 33 Annual value of higher speed 34 Annual cost of oil changes 35 Annual cost of refueling 36 Annual cost of fuel 37 38 Note: you will need to calculate other costs in addition to those listed. Please enter those into the spreadsheet 39
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