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Please use excel and demonstrate the formulae used.A regional architecture/contractor firm purchased an HVAC unitfor $25,000 that was expected to last 15 years. It has a salvagevalue of $0 in 10 more years. The annual operating cost of thisunit started at $2,000 in the first year and has increased steadilyat $250 per year ever since; last year the cost was $3,000. Itsbook value is now $13,000. They are building a new wing at theirregional headquarters to accommodate a much larger computer designemphasis requiring larger, faster computers, architecturalprinters, e-storage for a construction repository of previousdesigns, and an increased human heat load. They can buy anadditional unit to air-condition the new wing for $18,000. It willhave a service life of 15 years, a net salvage of $0 at that time,and a $3,000 market value after 10 years. It will have annualoperating costs of $1,800 in the first year, increasing at $100 peryear. As an alternative, they can buy a new unit to heat and coolthe entire building for $35,000. It will last for 15 years and havea net salvage of $0 at that time; however, it will have a marketvalue of $8,500 after 10 years. It will have first-year operatingcosts of $3,700/year, increasing at $200 per year. The present unitcan be sold now for $7,000. MARR is 11%percent, and the planninghorizon is 10 years.a) Clearly show the cash flow profile for each alternative usinga cash flow approach (insider's viewpoint approach).b) Using a PW analysis and a cash flow approach (insider'sviewpoint approach), decide which one is the more favorablealternative.c) Clearly show the cash flow profile for each alternative using anopportunity cost approach (outsider's viewpoint approach).d)UsingaPWanalysisandanopportunitycostapproach(outsider'sviewpointapproach),decide which one is the more favorable alternative.