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- Company's NPV and business analysis shows that expanding capacity to produce Gorchet F75 - a high performance plastic used in cell phone cases would

image text in transcribed - Company's NPV and business analysis shows that expanding capacity to produce Gorchet F75 - a high performance plastic used in cell phone cases would not yield a positive NPV. - The company has two alternatives: - Continue producing Gorchet F75 in the current facility thereby limiting cash flow to $150,000/ year - Use a toller (contract manufacturer) to produce Gorchet 75 with expected cash flow shown below. (\$s in 000 s) - Proposal from toller is for a $500 payment in Year 0 and 50% of the total cash flow below. Year Total Cash Flow w Toller - Assume an 8% discount rate. - You are the executive vice president of the division that manufactures Gorchet F75. What is your decision

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