please do all of them.

A company that manufactures recreational pedal boats has approached Joseph Cichanowski to ask if he would be interested in using Current Designs' rotomold expertise and equipment to produce some of the pedal boat components. Joseph is intrigued by the idea and thinks it would be an interesting way of complementing the present product line. One of Joseph's hesitations about the proposal is that the pedal boats are a different shape than the kayaks that Current Designs produces. As a result, the company would need to buy an additional rotomold oven in order to produce the pedal boat components. This project clearly involves risks, and Joseph wants to make sure that the returns justify the risks. In this case, since this is a new venture, Joseph thinks that a 15% discount rate is appropriate to use to evaluate the project. As an intern at Current Designs, Joseph has asked you to prepare an initial evaluation of this proposal. To aid in your analysis, he has provided the following information and assumptions. 1. The new rotomold oven will have a cost of $236,000, a salvage value of $0, and an 8 -year useful life. Straight-line depreciation will be used. 2. The projected revenues, costs, and results for each of the 8 years of this project are as follows. Current Designs faces a number of important decisions that require incremental analysis. Current Designs is always working to identify ways to increase efficiency while becoming more environmentally conscious. During a recent brainstorming session, one employee suggested to Diane Buswell, controller, that the company should consider replacing the current rotomold oven as a way to realize savings from reduced energy consumption. The oven operates on natural gas, using 16,700 therms of natural gas for an entire year. A new, energy-efficient rotomold oven would operate on 14,700 therms of natural gas for an entire year. After secking out price quotes from a few suppliers, Diane determined that it would cost approximately $245,000 to purchase a new, energy-efficient rotomold oven. She determines that the expected useful life of the new oven would be 10 years, and it would have no salvage value at the end of its useful life. Current Designs would be able to sell the current oven today for $9,800. Othenwise, its remaining useful life is estimated at 10 years with a zero salvage value. (a) Prepare an incremental analysis to determine if Current Designs should purchase the new rotomold oven, assuming that the average price for natural gas over the next 10 years will be $0.60 per therm. (Enter decrease in net income then enter with a negative sign preceding the number or porenthesis, eg 15,000 or (15,000)) Prepare an incremental analysis to determine if Current Designs should purchase the new rotomold oven, assuming that the average price for natural gas over the next 10 years will be $0.60 per therm. (Enter decrease in net income then enter with a negative sign preceding the number or parenthesis, eg. 15,000or(15,000) ) Current Designs purchase the new rotomold oven. Click here to view PV table. (b) Compute the payback period. (Round answer to 2 decimal places, e.g. 15.25.) Payback period years