On January 11, 2023, the finance committee of Mada Plastic Molding Company (MPMC) met to evaluate eight capital-budgeting projects. They had four mutually exclusive profit projects to consider. Projects E and F related to a new patented process for molding hard plastics. MPMC had to decide between manufacturing the equipment for the process or selling the patent rights to Polyplastics. Incorporated. These projects spanned several years, with different cash flows. Project E involves a newly developed and patented process for molding hard plastics. MPMC faces a decision on whether to manufacture and market the equipment necessary for this molding process or sell the patent rights to Polvplastics Incorporated, the world's largest producer of plastics products. This decision has significant implications for MPMC, as it could determine the company's involvement in a potentially lucrative market. The project's outcome depends on whether MPMC chooses to commercialize the technology or simply monetize the patent rights. The cash flows associated with Project E are spread over ten years, reflecting the expected duration of the project. Here are the cash flows for Project E : - Year 0: Initial investment of - $30,000 - Year 1: Cash inflow of $210,000 - Year 2: Cash inflow of $100,000 - Years 3 to 10 : Cash inflow of $100,000 per year In Year 0, MPMC would need to make an initial investment of $30,000, likely for testing and refining the newly developed molding process. Subsequently, the project is expected to generate positive cash inflows, with an initial significant inflow in Year 1, followed by consistent annual inflows of $100,000 from Year 2 through Year 10. This project's decision is critical because it determines the direction MPMC will take with the patented technology. The company needs to assess whether it has the resources and expertise to develop and market the equipment, whether the market for this technology is promising, and whether it's more financially advantageous to do so rather than selling the patent rights to Pbluplastics. Incorporated. The evaluation will likely involve a cost-benefit analysis, market research, and a consideration of the strategic direction of the company. Project F is another project related to a newly developed and patented process for molding hard plastics, similar to Project E. In this case, MPMC faces a decision on whether to manufacture and market the equipment necessary for this molding process or sell the patent rights to Polvplastics. Incorporated, a major player in the plastics industry. The outcome of this decision will have significant implications for MPMC, as it determines the company's involvement in a potentially lucrative market. Like Project E, Project F's outcome depends on whether MPMC chooses to commercialize the technology or simply monetize the patent rights. The cash flows associated with Project F are also spread over ten years, reflecting the expected duration of the project. Here are the cash flows for Project F: - Year 0: Initial investment of -\$271,500 - Year 1: Cash inflow of $100,000 - Years 2 to 10: Cash inflow of $100,000 per year In Year 0, MPMC would need to make a substantial initial investment of -\$271,500, which might involve testing and refining the newly developed molding process. After this initial investment, the project is expected to generate consistent annual cash inflows of $100,000 from Year 1 through Year 10. Project F presents a similar decision-making challenge to Project E. MPMC must assess its resources, expertise, market potential, and strategic goals to determine whether it should invest in manufacturing and marketing the equipment associated with the patented technology or if it would be more financially advantageous to sell the patent rights to Polyplastics Incorporated. The decision will involve a comprehensive evaluation of chsts, potential revenue, and market dynamics. What are the NPV, PI, and IRR values for Projects E and F, even though they have different project durations? How can these projects be compared, and which one should be selected? This assumes there are no capital constraints