Question

PLEASE WITH EXCEL MICROSOFT PROGRAM!!!!!!!

Objective: This activity has the purpose of helping students calculate the benefit - cost ratio of each alternative and select the best alternative using the software Microsoft Excel. (Objective 4) Student Instructions: Read example to be used to compute the Benefit - Cost ratio. Textbook problem 10 - 4 (Sullivan W., Wicks E., and Patrick C.), page 468: A retrofitted space- heating system is being considered for a small office building. The system can be purchased and installed for $120,000, and it will save an estimated 300,000 kilowatt-hours (kWh) of electric power each year over a six year period. A kilowatt-hour of electricity costs $0.10, and the company uses a MARR of 15% per year in its economic evaluations of refurbished systems. The market value of the system will be $8,000 at the end of six years, and additional annual operating and maintenance expenses are negligible. Use the benefit - cost method to make a recommendation. 1. Have available the Microsoft Excel software program. 2. Construct a table in the Microsoft Excel work sheet as shown below. The instructions are shown in the second table. Investment = Save = 300000*0.10 MARR = Market value = Factor Annuity $120,000.00 (A/P, 1, n) 0.264236907, 31,708.43 $30,000.00 30,000.00 0.15 $8,000.00 (A/F, 1, n) 0.114236907 913.90 n = Benefit/ cost = 0.974199

Answer 1

Question 1 :
			Factor	Annuity
Investment =	$120,000.00	(A/P, i ,n)	0.264237	$31,708.43
Save = 300000 *0.10	$30,000.00			$30,000.00
MARR =	0.15
Market value =	$8,000.00	(A/F, i, n)	0.114237	$913.90
n=	6
Benefit/Cost =				0.9741989
Answer =	a. True
Question 2 :
			Factor	Annuity
Investment =	$120,000.00	(A/P, i ,n)	0.229607	$27,552.89
Save = 300000 *0.10	$30,000.00			$30,000.00
MARR =	0.10
Market value =	$8,000.00	(A/F, i, n)	0.129607	$1,036.86
n=	6
Benefit/Cost =				1.1313912
Answer =	a. True

Question 3 :
			Factor	Annuity
Investment =	$120,000.00	(A/P, i ,n)	0.264236907	$31,708.43
Save = 300000 *0.10	$30,000.00			$30,000.00
MARR =	0.15
Market value =	$20,000.00	(A/F, i, n)	0.114236907	$2,284.74
n=	6
Benefit/Cost =				1.019586576
Answer =	a. Yes
Question 4:
			Factor	Annuity
Investment =	$120,000.00	(A/P, i ,n)	0.199252063	$23,910.25
Save = 300000 *0.10	$30,000.00			$30,000.00
MARR =	0.15
Market value =	$8,000.00	(A/F, i, n)	0.049252063	$394.02
n=	10
Benefit/Cost =				1.275714633
Answer =	a. True