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An Ontario-based automobile part manufacturer is considering adding capability to their plant in order to grab a share of the marketplace for a key component

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An Ontario-based automobile part manufacturer is considering adding capability to their plant in order to grab a share of the marketplace for a key component used in electric vehicles. They wish to decide whether this is a sound investment based on a 10 year study period. The cash flows related to this project are the following: They use an current MARR of 20% and inflation is predicted to average 4% per year over the next 10 years. a. Draw the cash flow diagram in terms of Real Cash Flows, let T = Sales. b. Compute the Real MARR to two decimal place accuracy, i.e. 12.34%. c. If the level of sales is projected to be 150,000 units per year, should they invest in this project? Fully justify your recommendation by calculating the present worth of the investment. Download from One the "Course Resources" Interest Table spreadsheet and use it for the interest factors required

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