Course Content-LON-CAPA PRONEMSEMOULE PROBLEM OS CAPITAL BUDGETING Twit Park Nautical Creation is one of the largest producers of miniature ships in a bottle. An especially complex part of one of the ships needs special production woment that is not useful for other products. The company purchased this equamentary in 2018 for $200,000, snow January 1, 2020, and the manager of the Mool Ships Division, seninley, is considering two alternatives Alternative Produce the complex Dating the current element The following areast year's average per-unit manufacturing costs, when production was 6,600 Direct materials 3.65 Director 3.BS Variable overhead 185 Fixed overhand 4.55 The woment will last for five more years with zero dhposal value that time. It can be ser immediately for $40,000 Altmathe - Produce the complex art with new more cientement The cost of the equipment is $230,000 and will have a five-year use with an estimated disposat time of $35.000. The sales representative in the newesent stated, "The equipment will allow direct labor and variable overhead to be reduced by a total of 11.95 per it." Finley think this estimate is ac, but also know that higher quality of direct material wil benessary with the equipment, costing $0.17 more per alt. In addition, we overed costs will increase by 53,000 inly expects production to continue at 8,800 ships in each of the five years REQUIRED (USE THE PRESENT VALUE TABLES ON PAGE 113 TO COMPUTE NET MESENT VALUES; BE SURE TO USE THE NEGATIVE SIGN WHEN SUBMITTING NEGATIVE NET PRESENT WALES: DO NOT WOONA DOLLAR SIGN 1. Asuming a discount rate of what is the rest present value to Creators use their current equipment to produce the part Incontres 2/5 Piso Tres 2. Assuming a discount rate of what is the representatical Creations by the new coment to prove the port how