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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

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 theyre considering: wooden sheds made with pressure treated wood, which cost a total of $194.2 each in raw wood to make, and steel sheds which cost a total of $310.4 each in raw steel. Each style of shed also costs a constant dollar value of $200 each to make. Its 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 2.9% 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 each for the steel ones. Due to space, they cant choose both of these options. If your MARRc is 22% and inflation is 3.5%:

A) Identify I, i*, and f

B) Draw out cash flow diagram for both of these options assuming you do these operations for 5 years

C) Determine the difference between the NPV of both options

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