1. Prepare the staff's for the three alternatives and discuss the results:

- IN the first set of calculations, a discount rate of 20 percent was used, a five-year time horizon, and taxes and terminal value was ignored. What is the relative attractiveness of these three alternatives?

2. IN the second set, a 10% discount rate was used. What happens to the NPV of each alternative? What happens to their relative attractiveness?

3. In the third set, time horizon was changed to 10 years, but 10% discount rate was kept. What is the 'bad news' that is referred to?

Based on this case study, should plans for the three alternatives be continued to be developed? If not, which should be eliminated? Are there other alternatives his staff should consider?