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Crane Partners LLC has been farming a new strain of radioactive-material-eating bacteria that the electrical utility industry can use to help dispose of its nuclear waste. Two opposing factors affect Crane's decision of when to harvest the bacteria. The bacteria are currently growing at a 23 percent annual rate, but due to known competition from other top firms, Crane analysts estimate that the price for the bacteria will decline according to the schedule below. If the opportunity cost of capital is 11.5 percent, then when should Crane harvest the entire bacteria colony at one time? Change in Price Due to Competition (%) 5% -2 Year 1 2 3 -8 4 -10 1 5 -15 3 6 -25 4 6 2 Crane should harvest the entire bacteria colony at the end of yea. 5 Post-Lecture Question 11.13 Appleaday Orchards is trying to decide when to harvest their crop. The NPV for each year if harvested, is as follows. When should Appleaday harvest? Assume a discount rate of 11 percent. (Do not round intermediate calculations and round your final answer to two decimal places.) NPV1 = $100,000 NPV2 = $115,000 NPV3 = $128,000 NPV4 = $139,000 NPV5 = $145,000 Harvest in Year 2 Harvest in Year 4 Harvest in Year 3 Harvest in Year 1 J. F. & Sons must choose between four pieces of equipment. Equipment A has an NPV of $30,000 and a useful life of 3 years. Equipment B has an NPV of $50,000 and a useful life of 7 years. Equipment C has an NPV of $45,000 and a useful life of 5 years. Equipment D has an NPV of $60,000 and a useful life of 4 years. If the firm typically uses a discount rate of 10% when making such decisions, which equipment should be chosen? Equipment D Equipment A Equipment C O Equipment B