Question: This is my work and I am doing it and I also want an expert to solve for confirmation. Please solve it in detail and

 This is my work and I am doing it and I

also want an expert to solve for confirmation. Please solve it in

detail and step by step so that I can understand it well.

This is my work and I am doing it and I also want an expert to solve for confirmation. Please solve it in detail and step by step so that I can understand it well. Thanks a lot for your time.

Background Harry, owner of an automobile battery distributorship in Atlanta, Georgia, performed an economic analysis 3 years ago when he decided to place surge protectors in-line for all his major pieces of testing equipment. The estimates used and the annual worth analysis at MARR 15% are summarized below. Two different manufacturers' protectors were compared. Installation Cost($) Annual Maint. Cost($/year) Salvage Value($) Equip. Repair Savings ($) Useful Life, years Power Llyod's Up -26000-36000 -800 -300 2000 3000 25000 35000 6 10 Make a spread sheet to calculate the annual of two manufacturer in order to make a decision. During a quick review this last year (year 3 of operation), it was obvious that the maintenance costs and repair savings have not followed (and will not follow) the estimates made 3 years ago. In fact, the maintenance contract cost (which includes quarterly inspection) is going from $300 to $1200 per year next year and will then increase 10% per year for the next 10 years. Also, the repair savings for the last 3 years were $35,000, $32,000, and $28,000, as best as Harry can determine. He believes savings will decrease by $2000 per year hereafter. Finally, these 3-year-old protectors are worth nothing on the market now, so the salvage in 7 years is zero, not $3000. Case Study Exercises 1. Plot a graph of the newly estimated maintenance costs and repair savings projections, assuming the protectors last for 7 more years. 2. With these new estimates, what is the recalculated AW for the Lloyd's protectors? Use the old first cost and maintenance cost estimates for the first 3 years. If these estimates had been made 3 years ago, would Lloyd's still have been the economic choice? 3. How has the capital recovery amount changed for the Lloyd's protectors with these new estimates

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