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IMPORTANI Questions 1 &2 ask for cash flows only, no present values. Since this problem is a cap problem, they are not worth any points,

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IMPORTANI Questions 1 &2 ask for cash flows only, no present values. Since this problem is a cap problem, they are not worth any points, and you have unlimited tries. Questions 3 4 require that you use the corrext cash flows from 1 and 2 to determine the net present ital budgeting values of the two alternatives. You should use the present value tables in the Coursenack The Brisbane resulting contribution margin of $72. Manufacturing Company produces a single model of a CD player. Each player is sold for $183 with a Brisbane's management is considering a change in its quality control system. Currently, Brisbane spends $38,500 a year to inspect the CD players. An average of 2,100 units turn out to be defective -1,680 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 $200,000. The machine would last for four years and would have salvage value at that time of $21,000. Brisbane would also spend $620,000 immediately to train workers to better detect and repair defective units. Annual inspection costs would increase by $21,000. This new control system would reduce the number of defective units to 370 per year. 300 of these defective units would be detected and repaired at a cost of $47 per unit. Customers who still received defective players would be given a refund equal to one-and-a-half times the purchase price. Questions 1h2 [0 points; unlimited tries] 1. What is the Year 2 cash flow if Brisbane keeps using its current system? Submit Answer Tres0/99 2. What is the Year 2 cash flow if Brisbane replaces its current system? Submit Answer Tries 0/99 Questions 3 &4 [5 points each; 5 tries each] 3. Assuming a discount rate of 6%, what is the net present value if Brisbane keeps using its current system? Subrnit Answer Tries 0/5 4. Assuming a discount rate of 6%, what is the net present value if Brisbane replaces its arent system

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