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6. Orpheum Productions in Nevada is considering three mutually exclusive alternatives for lighting enhancements to one its recording studios. Each enhancement will increase revenues by

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6. Orpheum Productions in Nevada is considering three mutually exclusive alternatives for lighting enhancements to one its recording studios. Each enhancement will increase revenues by attracting directors who prefer this lighting style. The cash flow details, in thousands of dollars, for these enhancements are shown in the chart below. MARR is 10.5%/year. End of Year Light Bar Sliding Spots Reflected Beam $20,00 6,000$14,000 $2,000$3,500 2,000 $3,500 $2,000$3,500 0 $0 $2,300 $4,600 $6,900 $9,200 $11,500 2 4 $2,000 $3,500 5 $2,000 $3,500 2,000 $3,500 6 a. Based on a future worth analysis, which alternative (if any) should be implemented? You need to show the future worth for all alternatives to get full credit. c. Compare the future worth results of letter "a" with the future worth results and explain your conclusions. of letter "b" b. Use the portfolio approach to examine the future worth of each alternative. Make your recommendation based on the portfolio value. You need to show the portfolio value for all alternatives to get full credit (do not forget that the company can leave its money in an investment pool)

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