A company is investigating three alternatives as follows: Ho Alternative A Initial cost $60,000 Annual Benefits $32,000 Salvage Value $10,000 Useful life, years 2 Alternative B $40,000 $16,000 $9,000 3 Alternative C $50,000 $17,000 $9,000 6
A company is investigating three alternatives as follows: Ho Alternative A Initial cost $60,000 Annual Benefits $32,000 Salvage Value $10,000 Useful life, years 2 Alternative B $40,000 $16,000 $9,000 3 Alternative C $50,000 $17,000 $9,000 6
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can someone please help me to solve the following question in excel with a file laid out like this for each alternative and follow all directions. please and thank you!!!!

Transcribed Image Text:A company is investigating three alternatives as follows: Ho
Alternative A
Alternative B
Alternative C
Initial cost
$60,000
$40,000
$50,000
Annual Benefits
$32,000
$16,000
$17,000
Salvage Value
$10,000
$9,000
$9,000
Useful life, years
2
3
6
a) Draw Cash flow diagram for each alternative?
b) Which machine is preferable on the basis of PRESENT WORTH ANALYSIS if i=4% per year?
(Assume the selected alternative will be repeated each life cycle, in exactly the same manner

Transcribed Image Text:Year First Cost Annual Benefit
0
2
3
5
Salvage
Pwa
Cash flow, $
Year
0
1
2
3
4
5
First Cost
Annual Benefit
Salvage
PWb
Cash flow, $
0
P
Year
Q
First Cost
R
S
Annual Benefit Salvage
Cash flow, $
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