Nautical Creation is one of the largest producers of miniature ships in a bottle. An especially complex part of one of the ships requires special production equipment that is not useful for other products. The company purchased this equipment early in 2018 for $100,000. 's now January 1, 2020, and the manager of the Model Ships Division, FerFinley, is considering replacing the current equipment with new equipment that is more efficient The following are last year's everage per-unt manufacturing costs, when production na 15.600 ships: Direct materials $2.85 Director 4.80 Variable overhead 1.65 Fixed overhead 4.30 Theses representative for the new cients. The woment willow director to be reduced by 3.16 perunt. Find this is estimates accurate, but also know that a higher quality of direct material will be necessary with the new equipment, costing 50.25 more per unit. In addition, foed overhead costs will increase by $1,500 The cost of the new equipment S215,000 and will have a five-year useful ife with an estimated sposal value at that time of $15,000. The current equipment will last for five more years. It will have a dienal value at that time, but can be wol mediately for $35.000 Finley expects production to continue 15.600 ships in each of the next five years REQUIRED (USE THE PRESENT VALUE TABLES ON PAGE 113 TO COROUTE NET PRESENT VALLES, DE SURE TO USE THE NEGATIVE SICK WHEN SETTING NEGATIVE NET PRESENT VALUES 1. Assuming a discount rate of what is the net present value in Nautical Centers uses the current coupment to produce the part Thes 0/6 2. Assuming a discount rate of what is the net present value of Nautical Creations by the new equipment to produce the part Sulton Tres 0/6