Use Excel to solve the question and show all equations or just upload the Excel

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Use Excel to solve the question and show all equations

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4. (25 points) A business firm is contemplating the installation of an improved material- handling system between the packaging department and the finished goods warehouse. Two designs are being considered. This first consists of an automated guided vehicle system (AGVS) involving three vehicles on the loop. The second design consists of a pallet conveyor installed between packaging and the warehouse. The AGVS will have an initial equipment cost of $280,000 and annual O&M; costs of S50,000. The pallet conveyor has an initial cost of $360,000 and annual O&M; costs of $35,000. The firm is not sure what planning horizon to use in the analysis; however, the salvage value estimates given in the following table have been developed for various planning horizons Use a MARR of 10% and BTCF (before tax cash flow. not depreciation or taxes involved) analysis determine the break- find the break-even value (N) to which the preferred alternative (AGV or pallet conveyor) changes even value for N, the planning horizon. This is,

Explanation / Answer

AGVS pallet conveyor MARR discount factor cost 280000 360000 10% O&M 50000 35000 total cost 330000 395000 years 1 299970 359055 59085 0.909 2 272580 326270 53690 0.826 3 247830 296645 48815 0.751 4 204880 269785 64905 0.683 5 169000 222614 53615 0.62 6 139776 184016 44240 0.564 7 105103 152179 47076 0.513 8 78754 125720 46966 0.466 9 59265 94388 35123 0.424 10 40465 70846 30382 0.385 11 27564 53263 25699 0.35 12 18846 39979 21133 0.318 13 11694 27278 15584 0.289 14 7249 18633 11383 0.263 15 4504 12730 8225 0.239 16 2538 8675 6138 0.217 17 1428 5374 3946 0.197 18 716 2963 2246 0.159 19 414 2075 1661 0.163 20 211 1284 1073 0.148 21 97 725 629 0.135 22 50 361 311 0.122 23 23 230 207 0.111 24 10 130 120 0.101 25 5 67 62 0.092 26 2 30 28 0.083 27 1 18 17 0.076 28 0 9 9 0.069 29 0 4 4 0.063 30 0 2 2 0.057 31 0 1 1 0.052

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