Q.6 Given all the optional scenarios, what recommendations would you make to Tucker regarding the expansion? Show the impact of adopting your recommendations in calculations on the sheet. You may combine any of the previous changes into this recommendation, but must include some response to the labor dispute. The NPV and IRR should reflect all implemented options. The recommendation should be thoroughly explained in at least a full paragraph and state clearly your recommendation for what Hansson should do.

Cost to Expand Interest Exp Depreciation Tax Rate NPV Discount Exhibit 5 7.75% Exhibit 5 57,817.0 7.75% 4,000 40% Exhibit 5 New Project Revenue Production Expenses 1% Raw Materials 3.00% Manufacturing Overhead 3% Maintenance Expense Labor Expense 7.80% Selling General and Admin Total Operating Expense EBITDA Depreciation EBIT Interest Expense FRT Taxes Net Profit Add Depreciation Total Cash Fl NPV IRR Flat Flat Calc Flat Units Unit Costs Selling Price 52000 60000 64000 68000 68000 48000 0.94 56000 0.96 68000 1 68000 1.01 68000 1.03 0.95 0.97 1.02 0.98 1.92 0.99 1.95 1.99 2.03 2.07 2.12 1.77 2009 1.81 2010 1.84 2011 1.88 2012 2013 2014 2015 2016 2017 2018 $ 84,960.00 $ 94,120.00 $ 103,040.00 $ 112,800.00 $ 122,880.00 $ 132,600.00 $ 135,320.00 $ 138,040.00 $ 140,760.00 $144,160.00 $ 45,120.00 $ 3,600.00 $ 2,250.00 $ 49,400.00 $ 3,708.00 $ 2,317.50 $ 53,760.00 $ 3,819.21 $ 2,387.03 $ 58,200.00 $ 3,933.82 $ 2,458.64 $ 62,720.00 $ 67,320.00 $ 1,051.83 S 1,173.39 $ 2,532.39 $ 2,608.37 S 68,000.00 S 68,680.00 $ 1,298.59 $ 1,127.55 $ 2,686.62 $ 2,767.22 S 69,360.00 $ 70,040.00 1,560.37 $ 4,697 18 2,850.23 $ 2,935.74 18,640.00 $ 20,233.30 $ 22,842.40 $ 25,254.60 $ 28,174.80 $ 30.888.50 $ 31,969.60 $ 33,088.50 $ 34,246.60 $ 35,445.20 6,526.88 $ 76,236.88 $ 8.723.12 S 7,341.36 $ 83,000.16 $ 11,119.84 $ 8,037.12 $ 90,845.79 $ 12.194.22 $ 8,798.40 $ 9,584.64 $ $ 10.342.80 $ 98,645.45 $ 107,063.67 $ 115,333.05 $ 14.154.55 $ 15,816.33 $ 17,266.95 $ 10,554.96 $ 10,767.12 $ 10,979.28 $ 11,244.48 117,509.77 $ 119,730.38 $ 121,996.48 $ 124,362.60 17,810.23 $ 18,309.62 S 18,763.52 $ 19,797.40 4,000.00 $ 4,723.12 S 4,000.00 $ 7,119.84 $ 4,000.00 $ 8,194.22 $ 4,000.00 $ 10,154.55 $ 4,000.00 $ 11,816.33 $ 4,000.00 $ 13,266.95 $ 4,000.00 $ 13,810.23 $ 4,000.00 $ 14,309.62 S 4,000.00 $ 14,763.52 $ 4,000.00 15,797.40 4,480.82 $ 242.30 $ 4,480.82 $ 2,639.02 $ 4,480.82 $ 3,713.40 $ 4,480.82 $ 5,673.73 $ 4,480.82 $ 7,335.51 $ 4,480.82 $ 8,786.13 $ 4,480.82 5 9,329.41 $ 4,480.82 $ 9,828.80 $ 4,480.82 $ 10,282.70 $ 4,480.82 11,316.58 96.92 $ 145.38 $ 1,055.61 $ 1,583.41 $ 1,485.36 $ 2,228.04 $ 2,269.49 $ 3,404.24 $ 2,934.21 $ 4,401.31 $ 3,514.45 $ 5,271.68 $ 3,731.77 $ 5,597.65 $ 3,931.52 $ 5,897.28 $ 4,113.08 $ 6,169.62 $ 4,526.63 6,789.95 4,000.00 $ 4,145.38 $ 4,000.00 $ 5,583.41 $ 4,000.00 $ 6,228.04 $ 4,000.00 s 4,000.00 $ 7,404.24 $ 8,401.31 $ 4,000.00 $ 9,271.68 $ 4,000.00 $ 9,597.65 $ 4,000.00 $ 9,897.28 $ 4,000.00 $ 10,169.67 $ 4,000.00 10,789.95 $ $ $ $ $ $ $ $ $ $ $ $ -57,817.0 $ Cost to Expand Interest Exp Depreciation Tax Rate NPV Discount Exhibit 5 7.75% Exhibit 5 57,817.0 7.75% 4,000 40% Exhibit 5 New Project Revenue Production Expenses 1% Raw Materials 3.00% Manufacturing Overhead 3% Maintenance Expense Labor Expense 7.80% Selling General and Admin Total Operating Expense EBITDA Depreciation EBIT Interest Expense FRT Taxes Net Profit Add Depreciation Total Cash Fl NPV IRR Flat Flat Calc Flat Units Unit Costs Selling Price 52000 60000 64000 68000 68000 48000 0.94 56000 0.96 68000 1 68000 1.01 68000 1.03 0.95 0.97 1.02 0.98 1.92 0.99 1.95 1.99 2.03 2.07 2.12 1.77 2009 1.81 2010 1.84 2011 1.88 2012 2013 2014 2015 2016 2017 2018 $ 84,960.00 $ 94,120.00 $ 103,040.00 $ 112,800.00 $ 122,880.00 $ 132,600.00 $ 135,320.00 $ 138,040.00 $ 140,760.00 $144,160.00 $ 45,120.00 $ 3,600.00 $ 2,250.00 $ 49,400.00 $ 3,708.00 $ 2,317.50 $ 53,760.00 $ 3,819.21 $ 2,387.03 $ 58,200.00 $ 3,933.82 $ 2,458.64 $ 62,720.00 $ 67,320.00 $ 1,051.83 S 1,173.39 $ 2,532.39 $ 2,608.37 S 68,000.00 S 68,680.00 $ 1,298.59 $ 1,127.55 $ 2,686.62 $ 2,767.22 S 69,360.00 $ 70,040.00 1,560.37 $ 4,697 18 2,850.23 $ 2,935.74 18,640.00 $ 20,233.30 $ 22,842.40 $ 25,254.60 $ 28,174.80 $ 30.888.50 $ 31,969.60 $ 33,088.50 $ 34,246.60 $ 35,445.20 6,526.88 $ 76,236.88 $ 8.723.12 S 7,341.36 $ 83,000.16 $ 11,119.84 $ 8,037.12 $ 90,845.79 $ 12.194.22 $ 8,798.40 $ 9,584.64 $ $ 10.342.80 $ 98,645.45 $ 107,063.67 $ 115,333.05 $ 14.154.55 $ 15,816.33 $ 17,266.95 $ 10,554.96 $ 10,767.12 $ 10,979.28 $ 11,244.48 117,509.77 $ 119,730.38 $ 121,996.48 $ 124,362.60 17,810.23 $ 18,309.62 S 18,763.52 $ 19,797.40 4,000.00 $ 4,723.12 S 4,000.00 $ 7,119.84 $ 4,000.00 $ 8,194.22 $ 4,000.00 $ 10,154.55 $ 4,000.00 $ 11,816.33 $ 4,000.00 $ 13,266.95 $ 4,000.00 $ 13,810.23 $ 4,000.00 $ 14,309.62 S 4,000.00 $ 14,763.52 $ 4,000.00 15,797.40 4,480.82 $ 242.30 $ 4,480.82 $ 2,639.02 $ 4,480.82 $ 3,713.40 $ 4,480.82 $ 5,673.73 $ 4,480.82 $ 7,335.51 $ 4,480.82 $ 8,786.13 $ 4,480.82 5 9,329.41 $ 4,480.82 $ 9,828.80 $ 4,480.82 $ 10,282.70 $ 4,480.82 11,316.58 96.92 $ 145.38 $ 1,055.61 $ 1,583.41 $ 1,485.36 $ 2,228.04 $ 2,269.49 $ 3,404.24 $ 2,934.21 $ 4,401.31 $ 3,514.45 $ 5,271.68 $ 3,731.77 $ 5,597.65 $ 3,931.52 $ 5,897.28 $ 4,113.08 $ 6,169.62 $ 4,526.63 6,789.95 4,000.00 $ 4,145.38 $ 4,000.00 $ 5,583.41 $ 4,000.00 $ 6,228.04 $ 4,000.00 s 4,000.00 $ 7,404.24 $ 8,401.31 $ 4,000.00 $ 9,271.68 $ 4,000.00 $ 9,597.65 $ 4,000.00 $ 9,897.28 $ 4,000.00 $ 10,169.67 $ 4,000.00 10,789.95 $ $ $ $ $ $ $ $ $ $ $ $ -57,817.0 $