A critical machine in BHP Billiton's copper refining operation was purchased 7 years ago for $160,000. Last year a replacement study was performed with the decision to retain it for 3 more years. The situation has changed. The equipment is estimated to have a value of $8000 if "scavenged" for parts now or anytime in the future. If kept in service, it can be minimally upgraded at a cost of $43,000 to make it usable for up to 2 more years. Its operating cost is estimated at $22,000 in the first year and $29,000 in the second year. Alternatively, the company can purchase a new system, the challenger, that will have an AWC of $-44,000 over its ESL. Use a MARR of 10% per year and annual worth analysis to determine when the company should replace the machine. The AW value of the challenger is $-| and the AW value of the defender at the end of year 2 is $-| The company should replace the machine (Click to select) ☑

Huntington Medical Center purchased a used low-field MRI scanner 2 years ago for $445,000. Its operating cost is $225,000 per year and it can be sold for $125,000 anytime in the next 3 years. The Center's director is considering replacing the presently owned MRI scanner with a state-of-the-art 3 Tesla machine that will cost $2 million.The operating cost of the new machine will be $220,000 per year, but it will generate extra revenue that is expected to amount to $425,000 per year. The new unit can probably be sold for $725,000 3 years from now. You have been asked to determine how much the presently owned scanner would have to be worth on the open market for the AW values of the two machines to be the same over a 3-year planning period. The Center's MARR is 9% per year. The presently owned scanner should be worth $ on the open market.

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Can you please show me how to do these parts on excel? I have included the solutions to the parts, but I need to see how it is done with the formulas/equations on Excel, so I can fully understand what is going on. Thank you in advance!