Alternative $4)$ Build a new facility on site to expand parts production and capacity without expanding night

and weekend shifts. Skyhawk would move its parts manufacturing, advisory, maintenance, and repair services

from its existing facility and increase its aircraft upgrade services. Management expects a new facility design and

subsequent construction and moving costs to be $$40$ million and additional fixed overhead costs of $$100,000$ per

year, but a redesigned production process resulting from new additional space would allow Skyhawk to increase

production by $5\%$ the first year, $10\%$ the second year, and $25\%$ each year thereafter. This alternative would allow

Skyhawk to add one new production line. A new facility will be depreciated on a straight$-$line basis over $25$ years.

Alternative $5)$ Build a new facility to expand aircraft production capacity without expanding night and

weekend shifts. Skyhawk would retain its existing facility for its parts manufacturing, advisory, maintenance, and

repair services as well as increasing its aircraft upgrade services. Management expects a new facility design and

subsequent construction and moving costs to be $$1$ billion and additional fixed overhead costs of $$250,000$ per

year, but a redesigned production process resulting from new additional space would allow Skyhawk to increase

production by $20\%$ the first year, $40\%$ the second year, $80\%$ the third year, and $100\%$ each year thereafter. A new

facility will be depreciated on a straight$-$line basis over $40$ years.