Domino's Pizza in Auburn requires a new pizza oven that needs to last six years. Three options are available, and the quality of each is reflected in their associated costs and benefits (in terms of better quality, reduced floor space usage, more automation, and safer working environment): Oven A, which costs $30,000, has annual operating and labor costs of $25,000 and a useful service life of six years with an estimated salvage value of $3,000. This medium-quality option will generate $55,000 in benefits per year. Oven B, which costs $60,000, has annual operating and labor costs of $20,000 and a useful service life of six years with an estimated salvage value of $4,000. This high-quality option will generate $60,000 in benefits per year. Use the existing oven (Option C) after an overall to rebuild it which costs $10,000. The annual operating and labor costs are $30,000. The company estimates it will generate $50,000 in benefits each year from the rebuild. There is no salvage value after six years. This is a before-tax analysis. The initial cost of the new oven or repair happens at time 0. Otherwise, we use the end of year convention. To accomplish this case, I recommend you use a spreadsheet such as xls. You will upload the spreadsheet (or scanned manual sheet if you do it by hand). You will also upload a separate pdf file with the answers to Question 5. Thank you. Q1 (25pts): According to the present-worth (PW) criterion, which option would be chosen at 11%? Show all of the years and categories (such as investment, revenue, expense, salvage) as a table in the xls or sheet. Q2 (20pts): Now, add a financing option for options A and B. The company is considering financing $25,000 of the initial investment at 8% APR for Ovens A or B. Payments are due quarterly. The life of the loan is two years. Calculate the interest and principal paid per payment period and use that to complete amortization tables. Update your analysis for Options 1 and 2 (ignore tax effects). Q3 (25 pts): Use the Net Cash Flows from Q1 to calculate the cumulative discounted cash flows for each option. From that, determine the project balance of each option at each end of year and the discounted payback periods for each option. From the discounted payback period perspective, which project is best? Q4 (25 pts): Calculate the IRR for each option of Q1. Perform an incremental analysis (if necessary) to choose the best Oven option for Domino's from the IRR perspective. For that best option, calculate the Benefit to Cost ratio. Q5 (5 pts): Considering the outcomes of PW, IRR, and Discounted Payback Period along with other factors that you can think of that might be relevant, write a few sentences that advocate (provide a rationale for) each option as the best choice.