Please Show detail work on Excel A bakery is considering replacing an oven. The

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Please Show detail work on Excel

A bakery is considering replacing an oven. The defender (current oven) has a market value of $20,000 that is expected to decrease to $17,000 by the end of the current year and to S14,000 by the end of the second year. Operating and maintenance costs will be S9,500 over the coming year and S9,600 in year 2. What is the total marginal cost of the oven in years one and two if the bakery has a minimum attractive rate of return of 10 percent? Show your work. 8. Year Total MO

Explanation / Answer

Market value Loss in Value Loss of Int AOC Marginal cost year 0                  20,000 0 1                  17,000      (3,000)        (2,000)          (9,500)                        (14,500) 2                  14,000      (3,000)        (1,700)          (9,600)                        (14,300)

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