a. Determine the annual contribution margin for manufacturing and selling the silica-blended tires.

b. Determine the annual cash flows of manufacturing and selling silica-blended tires, incorporating the impact of lost sales from conventional tires.

c. Determine a net present value analysis of the silica equipment investment assuming an eight-year life and 12% minimum rate of return. (Use the present value tables in Appendix A.) Round present value calculations to the nearest dollar.