Description Project-A Capital (RO) 370,850 Project-B 475,000 Life (years) 15 15 Sales Quantity (units per year) 10,000 12,000 Salaries per year (RO) Other fixed costs per year (RO) 45,000 50,000 40,000 85,000 Wages per year (RO) 70,000 80,000 Cost of materials per year (RO) 223,420 293,530 Other variable costs per year (RO) 35,000 40,000 Scrap value at the end of the year (RO) 32,210 41,590 Cost of capital (%) 16 16 Week 12 13 14 15 16 17 Demand for the bikes 80 70 90 120 100 85 Demand of Front Rim 50 40 30 125 The demand of Rear Rim 70 60 80 Part/Component Bike Lead Time Stock on Hand Batch Size Safety Stock 1 170 100 0 Front wheel 120 120 100 Rear wheel 60 150 125 Front Rim 2 70 150 100 Rear Rim 2 180 100 100 Front Hub 100 150 50 Rear Hub 110 100 50 Spokes 8700 3,000 1,100