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Expand Your Critical Thinking 25-02 -C Hawke Skateboards is considering building a new plant. Bob Skerritt, the company's marketing manager, is an enthusiastic supporter of

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Expand Your Critical Thinking 25-02 -C Hawke Skateboards is considering building a new plant. Bob Skerritt, the company's marketing manager, is an enthusiastic supporter of the new plant, Lucy Du, the company's chief financial officer, is not so sure that the plant is a good idea. Currently, the company purchases its skateboards from foreign manufacturers. The following figures were estimated regarding the construction of a new plant Cost of plant $4,720,000 Estimated usefutte 15 years Annual cash Infos 4,720,000 Salvage value $2,360,000 Annual cash out hows 4,177,000 Discount rate 1196 Bob Skerret believes that these gures understate the true potential value of the plant. He suggests that by manufacturing its own skateboards the company wil benefit from a "buy American patriotism that he believes is common among skateboarders. He also note that the firm has had numerous quality problems with the skateboards manufactured by its suppliers. He suggests that the inconsistent quality has resulted in lost sales, increased warranty claims, and some costly lawsuits. Overall, he believes sales will be $235,000 higher than projected above, and that the savings from lower warranty costs and legal costs will be $71,000 per year. He also believes that the project is not as risky as assumed above, and that a 9% discount rate is more reasonable. Click here to view the factor Answer each of the following. Compute the net present value of the project based on the original projections (Ir the net present value is negative, weether a negative in preceding the number. -45 or parentheses (45). Mound factor values to decimal places, ap. 1.25126 and Malaswer to o decal places, 5,275.) Net present Value Should the project be accepted! 1 The project should be LINK TOTEKE Compute the net present value incorporating Bob's estimates of the of the langileen, but counter the met present a negative, une afthera negative in preceding the number. 45 partsen (Monroeter value to see. 1.25124 anaamwer to detalles : 5,275.) Neretvu Should the project be accepted The project should be YER Com the prevalentemente note that more we were negative on the number (Mountate and ware) soud pred The other CHI www to Show Work for this questions

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