part D,E,F plz

2. Tony Skateboards is considering building a new plant. James Bott, the company's marketing manager, is an enthusiastic supporter of the new plant. Michele Martinez, the company's chief financial officer, is not so sure that the plant is a good idca. Currently the company purchases its skateboards from foreign manufacturers. The following figures ere estimated regarding the construction of the new plant. 15 years $2,000,000.00 11% Estimated useful life Salvage value Discount rate $4,000,000.00 $4,000,000.00 $3,550,000.00 Cost of plant Annual cash inflows Annual cash outflows James Bott believes that these figures understate the true potential value of the plant. He suggests that by manufacturing its own skateboards the company will benefit from a "buy American" patriotism that he believes is common among skateboarders. He also notes that the firm has had numerous quality control problems with the skateboards manufactured by its suppliers. He suggests that the inconsistent quality has resulted in lost sales, increased warranty claims, and some costly lawsuits Overall, he believes sales will be $200,000 higher than the projected above, and that the savings from lower warranty costs and legal costs will be $80,000 per year. He also believes that the project is not as risky as assumed above, and that a 9% discount rate is more reasonable. Required: a Compute the Cash Payback period for the project based on the original projections. b. Compute the net present value of the project based on the original projections. c. Compute the net present value of the project incorporating James' estimates of the value of the intangible benefits, but still using the l 1% discount rate. the intangible benefits. intangible benefits, but employing the 9% discount rate. d. Compute the Cash Payback period for the project incorporating James' estimates of the value of e. Compute the net present f. Comment on your findings. value of the project incorporating James' estimates of the value of the