Messages Counds Help Logout Course Content-LON-CAPA PROBLEMS MODULE PROBLEMA SI CAPITAL BUDGETING... Timer Balu Feedback Naubis Creation is one of the largest producers of miniatures is in a bottle. An especially complex part of one of the ships needs special production equipment that is not useful for other products. The company purchased this equipment early in 2018 for $200,000. It's now January 1, 2020, and the manager of the Model Ships Division, Berliniey, is considering two Serves Alamative 1. Produce the complex part using the current event The following are last year's average per-unit manufacturing costs, when production was 7,400 53.90 Direct materials Direct labor Variable overhead He overhead 3.65 1.85 430 The equipment will last for five more years with zer disposal at that time. It can be sold my for $20,000 Alternative 2. Produce the completart with wore efficient equipment The cost of the new equipment is $220,000 and will have a five-yearful life with an estimated disposal value that time of $40,000. The sales representatives the new equipment stated. The new equipment will allow direct labor and variable overhead to be reduced by a total of 225 per itiney think this estimate is rate, but also know that a higher quality of direct material will be necessary with the new equipment, costing $0.15 more pent. In addition for overhead coats will increase by 53,000 Finley expects production to continue at 7.400 ships in each of the next five years REQUIRED USE THE PRESENT VALUE TABLES ON PAGE 113 TO COMPUTENET PRESENT VALUES; SE SURE TO USE THE NEGATIVE SION WHEN SUBMITTING NEGATIVE NET PRESENT VALUES, DO NOT INCLUDE A DOLLAR SIGN 1. Assuming a discount rate of what is the net present value of Nautical Creations uses their current equipment to produce the part? This 0/5 2. Asuming a discount rate of 79 what is the net present value fical Creations buys the new equipment to produce the part? Thies 0/5 Threaded view Cheological in Other View Meral aferences on what make as NEW