Question 9 (5 points) The company you work for in pursuing a job building outdoor sheds for storing bicycles for commuters. The company is considering producing these sheds long term but wants to run a test operation of these sheds. The company has two main options they're considering: wooden sheds made with pressure treated wood, which cost a total of $191.8 cach in raw wood to make, and steel sheds which cost a total of $296.2 each in raw steel. Each style of shed also costs a constant dollar value of $200 cach to make. It's noted that the price of the raw wood is stated to inflate at 5.2% per year, while the price of raw steel is expected to increase at 3.0% per year. The company estimates they can make 20 of each shed each year and can sell those 20 sheds for $600 each for the wood sheds and $ 700 cach for the steel ones Due to space, they can't choose both of these options. If your MARRe is 21% and inflation is 3.5% 4) Identify I. 1*. and S B) Draw out cash flow diagram for both of these options assuming you do these operations for 3 years C) Determine the difference between the NPV of both options Submit the answer to all these 3 in the Dropbox for the assignment. For the answer in the box below just be and hit submit. Your Answer: Question 9 (5 points) The company you work for in pursuing a job building outdoor sheds for storing bicycles for commuters. The company is considering producing these sheds long term but wants to run a test operation of these sheds. The company has two main options they're considering: wooden sheds made with pressure treated wood, which cost a total of $191.8 cach in raw wood to make, and steel sheds which cost a total of $296.2 each in raw steel. Each style of shed also costs a constant dollar value of $200 cach to make. It's noted that the price of the raw wood is stated to inflate at 5.2% per year, while the price of raw steel is expected to increase at 3.0% per year. The company estimates they can make 20 of each shed each year and can sell those 20 sheds for $600 each for the wood sheds and $ 700 cach for the steel ones Due to space, they can't choose both of these options. If your MARRe is 21% and inflation is 3.5% 4) Identify I. 1*. and S B) Draw out cash flow diagram for both of these options assuming you do these operations for 3 years C) Determine the difference between the NPV of both options Submit the answer to all these 3 in the Dropbox for the assignment. For the answer in the box below just be and hit submit. Your
