Please answer number 14 and 15. Thank you so much in advance.

che Brothers is considering a capacity expansion of its supermarket. The landowner will build the addi- tion to suit in return for $200,000 upon completion and a 5-year lease. The increase in rent for the addition is $10,000 per month. The annual sales projected through year 5 follow. The current effective capacity is equiva lent to 500,000 customers per year. Assume a 2 percent pretax profit on sales. 14 Year 2 3 5 Customers 560,000 600,000 685,000 700,000 715,000 Average Sales $50.00 $53.00 $56.00 $60.00 $64.00 per Customer a. If Roche expands its capacity to serve 700,000 customers per year now (end of year 0), what are the projected annual incremental pretax cash flows attributable to this expansion? b. If Roche expands its capacity to serve 700,o00 customers per year a end of year 2. the land owner will build the same addition for $240,000 and a 3-year lease at $12,000 per month. What are the projected annual incremental pretax cash flows attributable to this expansion alternative? 15. MiM Internationa is seeking to purchase a new machine in order to reduce costs. Two alterna- tive machines are in consideration. Machine 1 costs $500,000 but yields a 15 percent savings over the cur rent machine used. Machine 2 costs $900,000 but yields 25 percent savings over the current machine used. In order to meet demand, the following forecasted cost information for the current machine is also provided a. Based on the NPV of the cash flows for these five years, which machine should MKM International Purchase? Assume discount rate of 12 percent. b. If MKM International lowered its required discount rate to 8 percent, what machine would it purchase? Year 2 3 4 5 Projected Cost 1,000,000 1,350,000 1,400,000 1,450,000 2.550,0OO