Follow tha format shown in Exhibit 128-1 and Exhibit 12B-2 as you complate the raquiraments balow LGO stillater Designs has boen rebuilding Modal 100, Model 120, and Modal 150 Kicker subwoofers that ware returned for warranty action. Customers returning the subwoofars receive a new replacement. The warranty returns are than rebuilt and resold (as seconds). Tent sales are often used to sell the rebuilt speakers. As part of the rebuilding process, the speakers are demagnetized so that metal pieces and shavings can be removed. A demagnetizing (demag) machine is used to achiove this objective. A product design change has made the most recent Model 150 speakers too tall for the demag machine. They no longer fit in the demag machine LGO LGO Stillwster Designs is currently considering two alternatives. First, a new demag machine can be bought that has a different design, eliminating the fit problem. The cost of this machine is $600,000, and it wll last 5 years. Second, Stillwater can keep the current machine and sell the 150 speakers for scrap, using the old demag machine for the Model 100 and 120 speakers only. A rebuilt speaker sells for $295 and costs $274.65 to rebuild (for maten als, labor, and overhead cash outlays). The 274.65 outlay includes the annual operating cash effects of the new demag machine, tf not rebuilt, the Model 150 speakers can be sold for4 each as scrap. There are 10,000 Model 150 warranty returns per year. Assume that the required rate of return is 10%. 1. Datarmine which alternative is the best for Stillwater Designs by using NPV analysis. If requirad, round to the nearest dollar NPV (rebuild olternative) NPV (screp alternative) 2. CONCEPTUAL CONNECTION: Datermine which alternative is best for Stillwatar Dasigns by using an IRR analysis. Entar as a percent. Round your answers to the nearest whole percent. If IRR is infinita, leave the call blank. IRR (rebuild alternstive) ]% IRR (scrap alternative) Why is NPV analysis a better approach? Check My Work Previous 6/6 items core: 0.0% All work saved. Save and Exit Submit Assignment for Grading Follow tha format shown in Exhibit 128-1 and Exhibit 12B-2 as you complate the raquiraments balow LGO stillater Designs has boen rebuilding Modal 100, Model 120, and Modal 150 Kicker subwoofers that ware returned for warranty action. Customers returning the subwoofars receive a new replacement. The warranty returns are than rebuilt and resold (as seconds). Tent sales are often used to sell the rebuilt speakers. As part of the rebuilding process, the speakers are demagnetized so that metal pieces and shavings can be removed. A demagnetizing (demag) machine is used to achiove this objective. A product design change has made the most recent Model 150 speakers too tall for the demag machine. They no longer fit in the demag machine LGO LGO Stillwster Designs is currently considering two alternatives. First, a new demag machine can be bought that has a different design, eliminating the fit problem. The cost of this machine is $600,000, and it wll last 5 years. Second, Stillwater can keep the current machine and sell the 150 speakers for scrap, using the old demag machine for the Model 100 and 120 speakers only. A rebuilt speaker sells for $295 and costs $274.65 to rebuild (for maten als, labor, and overhead cash outlays). The 274.65 outlay includes the annual operating cash effects of the new demag machine, tf not rebuilt, the Model 150 speakers can be sold for4 each as scrap. There are 10,000 Model 150 warranty returns per year. Assume that the required rate of return is 10%. 1. Datarmine which alternative is the best for Stillwater Designs by using NPV analysis. If requirad, round to the nearest dollar NPV (rebuild olternative) NPV (screp alternative) 2. CONCEPTUAL CONNECTION: Datermine which alternative is best for Stillwatar Dasigns by using an IRR analysis. Entar as a percent. Round your answers to the nearest whole percent. If IRR is infinita, leave the call blank. IRR (rebuild alternstive) ]% IRR (scrap alternative) Why is NPV analysis a better approach? Check My Work Previous 6/6 items core: 0.0% All work saved. Save and Exit Submit Assignment for Grading