Econ q. Please show function used PROBLEM Capital...

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Econ q. Please show function used image
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PROBLEM Capital Investment Annual Expenses Maintenance Expense MACHINE A S25,000 S2,500 MACHINE B S29,500 $1750 S975 at EOY 3, and 500 at EOY 2, and increasing $125/yr thereafter decreasing $75/yr thereafter 7 years S5,000 Useful Life 9 years $6,000 Salvage Value Using the template exactly shown on the next page, develop a spreadsheet to calculate the following For interest rates frorn 5% to 40% in increments of 5%, compute the following (parts 1 and 2) Assuming that at the end of the useful life, a machine is replaced with an identical machine having equal costs and salvage, develop a table showing the cash flow of each machine over the Analysis Period. Use these cash flows to calculate the Net Present Costs for Machines A and B. 2. Calculate the Net Annual Costs for Machine A and B. Calculate the cash flow for EOY 0 to 63 for the difference between the cash flow of B minus cash flow of A. Use this cash flow to compute the Incremental ROR for (B-A). Save this file as Sheet 1 Based on your calculations, identify the better alternative for each of the interest rates used in your calculations? 5. Construct a line graph for Net Present Costs for A and B calculated above for the two machines. Label this worksheet as NPC Chart. 6. Construct a line graph for Net Annual Costs for A and B calculated above for the two machines. Label this worksheet as NAC Chart

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