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IMPORTANT Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the
IMPORTANT Questions 1 & 2 ask for cash flows only, no present values. They are a critical part of the problem, but since the problem is primarily about capital budgeting, they are not worth any points, and you have unlimited tries If your submissions are accepted as correct, but the answers that are provided (in bold) are different than your submissions, you should use the answers in bold when you answer Questions 3 and 4. Also, you should use the present value tables on page 113 in the Coursepack or on this website. The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $198 with a resulting contribution margin of $72. Brisbane's management is considering a change in its quality control system. Currently, Brisbane spends $40,000 a year to inspect the CD players. An average of 1,900 units turn out to be defective: 1,330 of them are detected in the inspection process and are repaired for $85, IT a defective CD player is not identified in the inspection process, the customer who receives it is given a fut 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 savage value at that time of $22,000. Brisbane would also spend se80,000 meatly to train workers to better detect and repair defective units. Annual inspection costs would increase by $21,000. Brisbane expects this y control system reduce the number of defective units to 380 per year 330 of these defective units would be detected and repaired at a cost of only $42 per unit. Customers who still receive defective players will be given a refund equal Questions 1 & 2 (0 points; unlimited tries] 1. What is the Year 3 cash flow if Brisbane keeps using its current system Subme Answer Tries 0/99 2. What is the Year 3 cash flow it Brisbane replaces as current system? Submit Amer Tries 0/99 Questions 3.4 [5 points each 5 tries nach] 3. Assuming a discount rate of 6%, what is the net present value if Brisbane keeps using its surrent systems? Submit Answer Tries 0/5 4. Assuming a decount rate of 6% Gant Answer Tries 0/5 Threaded View Orenalaical View Other Vit Export net present value if Dane replaces its current system NEW Question & Anonymous & eoty Man Mar 21 04:07:04 pm 2022 EDT)) Lcan't figure out what I am doing wrong for question 4, my work is below PVAL-790405) 340587,190 PVC1,000,00 21000-1564Y 304192.35 15687 PVFCF) 28850535 MPV PV(FOF)-1 1190000440000 30000 284505 35 630000918505.35 1 tried it the way where I would do every year individualy with PV, and that yielded a very similar result, aff by a couple cent 120% of the purchase price My gearences anamaAS NEW Mark NEW pats na maar hee 15
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