State the business case for option #3, the PCB in-sourcing proposal? Use the projections provided in the case to compute incremental cash flows for the PCB project as its NPV, IRR, and payback period. Consider the following: 1. Incremental cash flows 2. Compared to what base case? Explain all the components of the cash flows: Purchase savings Manufacturing costs Architectural and engineering fees Taxes Construction and equipment costs. Deprecation tax shields Incremental NWC How about land? Interest charges? Calculation of terminal value (TV) Stryker is using a discount rate of 15%, is this OK? Terminal values: There are two approaches: 1. Based on the residual book value of the project at the terminal year. 2. Perpetuity value of Free Cash Flows. Compute the NPV, based on the two approaches. 4. Compute NPV and interpret your results. Computer the IRR and interpret your results. Conduct a sensitivity analysis. What are the key inputs? What deserves more scrutiny? 5. Compute the project's payback period. What does it tell you? More or less than the NPV analysis. 6. Based on your analyses, would you recom