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Im struggling to use the data provided below to fill out the table for The Base case of A and the Alternate scenario for case

Im struggling to use the data provided below to fill out the table for The Base case of A and the Alternate scenario for case A.

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The data that is common to each system is as follows: Whichever of the new systems the company will purchase will require the construction of a new factory to house it. Anticipating that a new factory would be needed someday, the company spent $5,000,000 to acquire the necessary land in 2015. The factory will cost the company $10,000,000 to construct. The total amount of the Initial Investment (don't include Net Working Capital in your Depreciation calculation) will be depreciated straight line to zero through the life of each project (pay attention to the life span of each individual project). Last year, the finance committee of Spartan Sprockets spent $50,000 on a fact-finding tour of Oshkosh, Wisconsin to look at a similar manufacturing system to those they are considering buying. The company will need to spend $500,000 on infrastructure improvements in order to build the factory. Over the past 2 years, the company has spent $150,000 on research and development to see whether a new system was needed. The company's Tax Rate is 21%. The company has assigned a required rate of Return for all of the systems of 10%. System A: Base Case: Purchase Price: $4,500,000 After-tax Salvage Value: $2,000,000 Net Working Capital Needed: $750,000. 50% of this will be recovered in the terminal year of the project. Annual Sales attributed to this system: $20,000,000 Total Costs: 80% of Sales This project is to be evaluated using a 5-year time frame Alternate Scenario: Assume Total Costs have risen to 80.25% of Sales There is a 50% chance that the base case will be accurate, and a 50% chance that the Alternate Scenario will occur. System A Base Case Year Initial Investment NWC OCF Total CF NPV: System A Alternate Scenario Year Initial Investment NWC OCF Total CF

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