I dont know how to do #3 and #4

3. Assuming a discount rate of 6%, what is the net present value if Brisbane keeps using its current system?

4.Assuming a discount rate of 6%, what is the net present value if Brisbane replaces its current system?

The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $196 with a resulting contribution margin of $79. Brisbane's management is considering a change in its quality control system. Currently, Brisbane spends $41,500 a year to inspect the CD players. An average of 1,800 units tum out to be defective - 1,440 of them are detected in the inspection process and are repaired for $80. If a defective CD player is not identified in the inspection process, the customer who receives it is given a full refund of the purchase price. The proposed quality control system involves the purchase of an x-ray machine for $210,000. The machine would last for four years and would have salvage value at that time of $19,000. Brisbane would also spend $470,000 immediately to train workers to better detect and repair defective units. Annual inspection costs would increase by $20,000. Brisbane expects this new control system to reduce the number of defective units to 360 per year. 310 of these defective units would be detected and repaired at a cost of only $48 per unit. Customers who still receive defective players will be given a refund equal to 120% of the purchase price. Questions 1 & 2 [0 points; unlimited tries] 1. What is the Year 3 cash flow if Brisbane keeps using its current system? $-227,260 You are correct. Your receipt no. is 156-1022 ) Previous Tries 2. What is the Year 3 cash flow if Brisbane replaces its current system? $-88,140 You are correct. Your receipt no. Is 156-4245 Previous Tries Questions 3 & 4[5 points each; 5 tries each] -957 219 3. Assuming a discount rate of 6%, what is the net present value if Brisbane keeps using its current system? Submit Answer Incorrect. Trles 4/5 Previous Tries 4. Assurning a discount rate of 6%, what is the net present value if Brisbane replaces its current systern? Submit Answer Tries 0/5