IMPORTANT Questions 1 & 2 ask for cash flows only, no present values. Since this problem is a capital budgeting problem, they are not worth any points, and you have unlimited tries. Questions 3 & 4 require that you use the correct cash flows from 1 and 2 to determine the net present values of the two alternatives. You should use the present value tables in the Coursepack. The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $190 with a resulting contribution margin of $7. 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 2,100 units turn out to be defective -1,680 of them are detected in the inspection process and are repaired for $85. If a defective CD player is not identified in the inspection process, the customer whoreceives it is given a full refund of the purchase price. The proposed quality control system nvolves the purchase of an x-ray machine or $190 000. The machine ou d last or four years and would ave salvage value at hattimeof$19 O he da end $630,000 immediately to train workers to better detect and repair defective units. Annual inspection costs would increase by $20,000. This new control system would reduce the number of defective units to 350 per year. 280 of these defective units would be detected and repaired at a cost of $45 per unit. Customers who still received defective players would be given a refund equal to one-and-a-fourth times the purchase price. Questions 1 &2 [0 points; unlimited tries] 1. What is the Year 2 cash flow if Brisbane keeps using its current system? Subnit Answer Tries 0/99 2. What is the Year 2 cash flow if Brisbane replaces its current system? Submit Answer Tries o/99 Questions 3& 4 [5 points each; 5 tries each] 3. Assuming a discount rate of 8%, what is the net present value if Brisbane keeps using its current system? Submit Answer Tries o/s 4, Assuming a discount rate of 8%, what is the net present value if Brisbane replaces its current system? Submit Answer Tries o/s