Inquiry 1: Historical demand for Moonbus' best-selling product is provided in the table below. Month May June July August September October November Units Sold 1,500 1,400 1,800 1,500 1,900 1,800 orecasting for November, the logistics manager has calculated (a) the simple 4-month moving average [1875 units) and Mean Absolute Deviation [125 units) and (b) a three-month weighted moving average (weights: 0.50, 0.20, and 0.30) of 1920 units and Mean Absolute Deviation of 247 units. The plant manager asks for your assistance to "make sense of these numbers". In one well- articulated paragraph of 5 to 8 sentences (no more and no less), explain to the plant manager how the two forecasts were calculated (be sure to include calculations). Also, for the plant manager's benefit, include a brief explanation - also in your own words- of which of the two forecasts is believed to more reliable . Inquiry 2 (independent of -ie., not related to - Inquiry 1): Moonbus, Inc. is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $6 million. If demand for new products is low, the company expects to receive $9 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $14 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $8 million. Were demand to be low, the company would expect $14 million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $15 million The third option is Do Nothing (note: "Do Nothing" is always an option) In either case, the probability of demand being high is 0.60, and the probability of it being low is 0.40. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Moonbux' President sends the Net Present Value (NPV) calculations in millions of $U.S. to the plant manager, supply chain manager, and logistics manager who, in turn request your insights. othing is always an option). In either case, the probability of demand being high is 0.60, and the probability of it being low is 0.40. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Moonbux' President sends the Net Present Value (NPV) calculations in millions of $U.S. to the plant manager, supply chain manager, and logistics manager who, in turn request your insights. Plans NPV (Millions $U.S.) 6.0 Small Facility Large Faculity Do Nothing 6.6 0.0 In one well-articulated paragraph of 5 to 8 sentences (no less and no more), in your own words (not those of a textbook or website) explain which of the three mutually exclusive alternative plans should be selected based on Net Present Value. Include in your well-articulated paragraph the formulas that may be used to calculate each plan's NPV. Responses Response 1: Inquiry 1: Historical demand for Moonbus' best-selling product is provided in the table below. Month May June July August September October November Units Sold 1,500 1,400 1,800 1,500 1,900 1,800 orecasting for November, the logistics manager has calculated (a) the simple 4-month moving average [1875 units) and Mean Absolute Deviation [125 units) and (b) a three-month weighted moving average (weights: 0.50, 0.20, and 0.30) of 1920 units and Mean Absolute Deviation of 247 units. The plant manager asks for your assistance to "make sense of these numbers". In one well- articulated paragraph of 5 to 8 sentences (no more and no less), explain to the plant manager how the two forecasts were calculated (be sure to include calculations). Also, for the plant manager's benefit, include a brief explanation - also in your own words- of which of the two forecasts is believed to more reliable . Inquiry 2 (independent of -ie., not related to - Inquiry 1): Moonbus, Inc. is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $6 million. If demand for new products is low, the company expects to receive $9 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $14 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $8 million. Were demand to be low, the company would expect $14 million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $15 million The third option is Do Nothing (note: "Do Nothing" is always an option) In either case, the probability of demand being high is 0.60, and the probability of it being low is 0.40. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Moonbux' President sends the Net Present Value (NPV) calculations in millions of $U.S. to the plant manager, supply chain manager, and logistics manager who, in turn request your insights. othing is always an option). In either case, the probability of demand being high is 0.60, and the probability of it being low is 0.40. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Moonbux' President sends the Net Present Value (NPV) calculations in millions of $U.S. to the plant manager, supply chain manager, and logistics manager who, in turn request your insights. Plans NPV (Millions $U.S.) 6.0 Small Facility Large Faculity Do Nothing 6.6 0.0 In one well-articulated paragraph of 5 to 8 sentences (no less and no more), in your own words (not those of a textbook or website) explain which of the three mutually exclusive alternative plans should be selected based on Net Present Value. Include in your well-articulated paragraph the formulas that may be used to calculate each plan's NPV. Responses Response 1