In 2011, Vaught Industries closed its plant in Marionsville following labor, environmental, and safety problems. The plant was built in 2005 based on an older technology to produce meat products. It had positive NCF until 2010 and discontinued operation in 2011 due to labor and safety problems. In 2012, prior to the sale of the facility and property, Vaught spent $1 million to make the site environmentally acceptable to a potential buyer. The net cash flows in $100,000 over the years are listed below. Use a spreadsheet to do the following.

(a) Check for multiple rates of return.

(b) Find all rates that are real numbers between – 25% and +50%, and calculate the PW value for interest rates in this range.

(c) Indicate which is the best and correct i* value to use in a PWanalysis.

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Year 2005 2006 2007 2008 2009 2010 201 2012 NCF. SI-25 +10 +10 +15 +15-5-6-10