Abbott Door Company plans to sell 3,800 plastic doors during the month of March. At the end of March, Abbott would like to have 450 completed doors on hand to be ready for April. At the end of February, Abbott had 395 completed doors on hand. Each door uses twenty pounds of plastic. Abbott receives plastic on a daily basis and does not maintain any inventory of plastic. Each pound of plastic costs $1.50. 1. How many doors should Abbott produce during March? 2. How much money should Abbott door include in its direct materials budget for the month of March? Uncle Rico produces football videos. His cost of capital is 6%. Currently, he is analyzing purchase alternatives for video equipment. Data relevant to the decision are as follows: Machine A: Cost $93,000 Salvage Value: $4,000 Machine B: Cost $120,000 Salvage Value: $500 year 1 year 2 year 1 0.94334 year 2 0.89000 year 3 0.83962 year 4 0.79209 year 5 0.14726 Cash flow $ 33,000 21,000 20,000 23,000 25,000 Cash flow $ 26,000 26,000 26,000 26,000 26,000 year 3 year 4 year 5 1. Taking into account the cash flows AND the salvage value, use the net present value method to prepare an analysis to determine which machine Uncle Rico should purchase. 2. Compute the excess present value index of each machine 3. Conclude your analysis by stating which machine should be purchased, and state your reason