I need help solving this problem in excel my answer is not coming out the way, I expect it to come out. I am trying to figure it out. can you help please.
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A real estate firm is considering the purchase of two mutually exclusive income- producing properties. Both properties have reliable tenants with 15 year bonded leases (the lease will still be paid if a tenant leaves the property ahead of schedule). Using a 12% interest rate, compounded annually, determine which property should be selected using the Annual Cash Flow Analysis approach. 14 Alternative B 12.00% 12.00% n 15 Annual Cost 33,870 32,500 Annual Benefits 66,720 55,211 Initial Cost 120,560 115.250 Alternative A should be selected because it has a EUAW of 19.333. b. Alternative A should be selected because it has a EUAW of 10,964. C. Alternative B should be selected because it has a EUAW of 9,083. d. Alternative B should be selected because it has a EUAW of 2,376. Terminal Value 156.000 125,000
59 70 171 Alternative 172 173 174 PV of FC 175 PV of AB years 176 PV of AC years 177 PV of TV 178 NPV 179 180 181 B A 1 12.00% MOMO 12.00% B In 15 15 -120,560 -115,250 $454,420.88 $376,034.64 ($230,683.98) ($221,761.75) $28,500.62 $22,837.03 131,678 61,860 Annual Cost 63,870 32,560 Annual Benefits 66,720 55,211 Initial Cost 120,560 115,250 A Terminal Value 156,000 125,000