The Bronze Company is a national mattress manufacturer. Present Value of $1 table Its Marion plant will become idle on December 31, 2020. Present Value of Annuity of $1 table Nina Simon, the corporate controller, has been asked to Future Value of $1 table look at three options regarding the plant: Future Value of Annuity of $1 table (1) (Click the icon to view the options.) Read the requirements. Bronze Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 12%. Bronze is subject to a 30% tax rate on all income, including capital gains. Requirement 1. Calculate net present value of each of the options and determine which option Bronze should select using the NPV criterion. Begin the calculation of Option 1 by determining the after-tax cash inflow for rent. Then, determine the after-tax cash inflow for the material purchases discount. Finally, determine the after-tax cash inflow on sale of the plant and the total net present value (NPV) of Option 1. (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) ts Marion plant will become idle on December 31, 2020. Present Value of Annuity of $1 table Nina Simon, the corporate controller, has been asked to Future Value of $1 table look at three options regarding the plant: Future Value of Annuity of $1 table (1) (Click the icon to view the options.) Read the requirements. Bronze Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 12%. Bronze is subject to a 30% tax rate on all income, including capital gains. Requirement 1. Calculate net present value of each of the options and determine which option Bronze should select using the NPV criterion. Begin the calculation of Option 1 by determining the after-tax cash inflow for rent. Then, determine the after-tax cash inflow for the material purchases discount. Finally, determine the after-tax cash inflow on sale of the plant and the total net present value (NPV) of Option 1. (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) ption 1: The plant can be leased to the Coil Corporation, one of Bronze's suppliers, for 3 years. Under the lease terms, Coil would pay Bronze $215,000 rent per year (payable at year-end) and would grant Bronze a $59,000 annual discount from the normal price of coils purchased by Bronze. (Assume that the discount is received at year-end for each of the 3 years.) Coil would bear all of the plant's ownership costs. Bronze expects to sell this plant for $220,000 at the end of the 3 -year lease. Jption 2: The plant could be used for 3 years to make mattress covers as an accessory to be sold with a mattress. Fixed overhead costs (a cash outflow) before any equipment upgrades are estimated to be $21,000 annually for the 3-year period (assume the fixed costs occur at year-end). The covers are expected to sell for $29 each and variable cost per unit is expected to be $6. The following production and sales of the mattress covers are expected: 2021, 18,000 units; 2022,11,000 units; 2023,17,000 units. In order to manufacture the mattress covers, some of the plant equipment would need to be upgraded at an immediate cost of $110,000. The equipment would be depreciated using the straight-line depreciation method and zero terminal disposal value over the 3 years it would be in use. Because of the equipment upgrades, Bronze could sell the plant for $380,000 at the end of 3 years. No change in working capital would be required. Option 3: The plant, which has been fully depreciated for tax purposes, can be sold immediately for $780,000. Requirements 1. Calculate net present value of each of the options and determine which option Bronze should select using the NPV criterion. 2. What nonfinancial factors should Bronze consider before making its choice? The Bronze Company is a national mattress manufacturer. Present Value of $1 table Its Marion plant will become idle on December 31, 2020. Present Value of Annuity of $1 table Nina Simon, the corporate controller, has been asked to Future Value of $1 table look at three options regarding the plant: Future Value of Annuity of $1 table (1) (Click the icon to view the options.) Read the requirements. Bronze Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 12%. Bronze is subject to a 30% tax rate on all income, including capital gains. Requirement 1. Calculate net present value of each of the options and determine which option Bronze should select using the NPV criterion. Begin the calculation of Option 1 by determining the after-tax cash inflow for rent. Then, determine the after-tax cash inflow for the material purchases discount. Finally, determine the after-tax cash inflow on sale of the plant and the total net present value (NPV) of Option 1. (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) ts Marion plant will become idle on December 31, 2020. Present Value of Annuity of $1 table Nina Simon, the corporate controller, has been asked to Future Value of $1 table look at three options regarding the plant: Future Value of Annuity of $1 table (1) (Click the icon to view the options.) Read the requirements. Bronze Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 12%. Bronze is subject to a 30% tax rate on all income, including capital gains. Requirement 1. Calculate net present value of each of the options and determine which option Bronze should select using the NPV criterion. Begin the calculation of Option 1 by determining the after-tax cash inflow for rent. Then, determine the after-tax cash inflow for the material purchases discount. Finally, determine the after-tax cash inflow on sale of the plant and the total net present value (NPV) of Option 1. (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) ption 1: The plant can be leased to the Coil Corporation, one of Bronze's suppliers, for 3 years. Under the lease terms, Coil would pay Bronze $215,000 rent per year (payable at year-end) and would grant Bronze a $59,000 annual discount from the normal price of coils purchased by Bronze. (Assume that the discount is received at year-end for each of the 3 years.) Coil would bear all of the plant's ownership costs. Bronze expects to sell this plant for $220,000 at the end of the 3 -year lease. Jption 2: The plant could be used for 3 years to make mattress covers as an accessory to be sold with a mattress. Fixed overhead costs (a cash outflow) before any equipment upgrades are estimated to be $21,000 annually for the 3-year period (assume the fixed costs occur at year-end). The covers are expected to sell for $29 each and variable cost per unit is expected to be $6. The following production and sales of the mattress covers are expected: 2021, 18,000 units; 2022,11,000 units; 2023,17,000 units. In order to manufacture the mattress covers, some of the plant equipment would need to be upgraded at an immediate cost of $110,000. The equipment would be depreciated using the straight-line depreciation method and zero terminal disposal value over the 3 years it would be in use. Because of the equipment upgrades, Bronze could sell the plant for $380,000 at the end of 3 years. No change in working capital would be required. Option 3: The plant, which has been fully depreciated for tax purposes, can be sold immediately for $780,000. Requirements 1. Calculate net present value of each of the options and determine which option Bronze should select using the NPV criterion. 2. What nonfinancial factors should Bronze consider before making its choice