part 3b and 4

3. Division C also produces two product lines. Because the division can sell all of the product it can produce, Deisel is expanding the plant and noeds to decide which product line to emphasize. To make this decision, the division accountant assembled the following data: Aiter expansion, the factory will have a production capacity of 4,100 machine hours per month. The plant can manufacture either 28 units of K707s or 45 units of G582s per machine hour. a. Identify the constraining factor for Division C. b. Prepare an analysis to shew which product line to emphasiae. 4. Division D is considering two possible expansion plans. Plan A would expand a current product line at a cost of $8,700,000. Expected annual net cash inflows are $1,650,000, with zero residual value at the end of 10 years. Under Plan B, Dwision D would begin producing a new product at a cost of $8,100,000. This plan is expected to generate net cash inflows of $1,050,000 per year for 10 years, the estimated useful ife of the product line. Estimated residual value for Plan B is $1,200,000. Division D uses straight-line depreciation and requires an annual retum of B%. a. Compute the payback, the ARR, the NPV, and the profitability index for both plans. b. Compute the estimated IRR of Plan A. c. Use Excel to verily the NPV calculations in Requirement 4(a) and the actual IRR for the ho plans. How does the IRR of each plan compare with the company's required rate of retum? d. Division D must rank the plans and make a recommendation to Deisers top management team for the best plan. Which expansion plan should Division D choose? Why? What is your recosmendaticn to the marager of Division a? Divisith 13 drop the Toos product ine. It the T205 product ine is dropged. ootrasng income wit dviplon acoountand assembled the following data: (Clisk the icon to vlew the Bivisicenc prodect data.) 3a. idently the oonutraining facior tor Ovision C. Ohoisen Cs constraning factor it