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5 points a)Downling Sportswear is considering building a new factory to produce aluminium baseball bats. This project would require an initial cash outlay of $5.90D
5 points a)Downling Sportswear is considering building a new factory to produce aluminium baseball bats. This project would require an initial cash outlay of $5.90D 90D and would ganresate anak net cash inflows of $1,000,000 per year for 8 years.Calculate the project's NPV using a discount rate of 9% b)Barry Boswell is a financial analyst for Dossman Metal Works, Inc, and he is analyzing two alternative configurations for the finis now plasma te shop Thet allemes rented A and B below, will perform the same task, but alternative A will cost $95.000 to purchase while alterative B will cost only 560 000 Morsover the wees will have very different cash flows and usefule lives. The after tax costs for the two projects are as follows: Alternative Year A 0 $195,000) 1 $(21,000) 2. $(21,000) 3 $(21,000) 4 $(21,000) 5 $(21,000) 6 $(21,000) 7 $(21,000) Alternative B $(60,000) $(4,000) $(4,000) $(4,000) ulon i)Calculate each project's EAC at a discount rate of 10%. ii)Which of the alternatives do you think Barry should select? why
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