1.5 If there are 496 machine-hours available per week, how many rockers of each model should Jim Helmer produce to maximize profits? The following information applies to questions 1.6 to 1.8 : Patterson Company is considering two competing investments. The first is for a standard piece of production equipment. The second is for computer-aided manufacturing (CAM) equipment. The investment and after-tax operating cash flows are as follows: Patterson uses a discount rate of 18% for all its investments. Patterson's cost of capital is 10%. 1.6 Calculate the NPV for each investment by using a discount rate of 18%. 1.7 Calculate the NPV for each investment by using a discount rate of 10%. 1.8 Which rate is the best for Patterson and why? The following information applies to question 1.9: Stephans Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Due:25 October 2023 300 Marks Total R24.00 Bill Company has contacted Stephans with an offer to sell them 5000 of the subassemblies for R22.00 each. Stephans will eliminate R25 000 of fixed overhead if it accepts the proposal. 1.9 Calculate the relevant costs for Stephans? The following information applies to question 1.10: 1.10 For each of the following, identify whether it BEST relates to market-based, costbased, negotiated, or all types of transfer pricing. a. Bargaining between selling and buying units b. Budgeted costs