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Pucker Distributors handles the warehousing of perishable foodsand is considering replacing one of it primary cold storage units.The company had previously hired a consultant at a cost of $25,000to study the feasibility of replacing its cold storage unit.One vendor has offered to sell Pucker a cold storage unit for$250,000 with an expected life of 10 years. The unit is projectedto reduce electricity costs over the current unit by $50,000 peryear. However, it requires a $20,000 refurbishing every two years,beginning two years after purchase. The value of the unit at theend of 10 years is $5,000.Another vendor has offered to sell Pucker a cold storage unitwith similar capabilities for $300,000 and also with an expectedlife of 10 years. It will produce the same savings in electricitycosts, but requires refurbishing every five years at a cost of$40,000. The value of the unit at the end of 10 years is$10,000.Pucker's cost of capital is 8.5%.Please show with Excel formatting and formulas used
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