The following scenario contains all the information you need to answer the questions - use what's here, do not include additional analysis from the case or elsewhere

Your company has $10,000,000 in "excess cash" - more than you need to provide a cushion on your balance sheet to protect against risk. Jane, your crack financial analyst, has prepared a set of options for you to consider. They are:

A) Keep the $10,000,000 on the balance sheet and earn a 3.0% after-tax return from the bank for the next 15 years.

B) You have $10m in non-amortizing bonds outstanding, with 15 years left, 12% annual interest coupon, and the total principal repayment due at the end of the term. Your bondholders have offered to sell the bond back to you at par value. Assume a tax rate of 35%.

C) Expand your plant capacity by 165,000 units per shift for a total capital cost of $10,000,000. You can expect an $11 after-tax contribution margin per unit and that you can run this new portion of the plant for 2 shifts for the next 15 years, at which point the equipment will need to be scrapped.

D) Spend the $10,000,000 this year and another $10,000,000 next year on inventing the CPRA product. Jane says you will yield zero incremental after-tax contribution margin the following year, but $2.5m the year after that, $5m the year after that, and $10m per year thereafter until year 15, at which point Jane says it's reasonable to assume that the CPRA product will have been supplanted by other technologies.

Jane has prepared a worksheet where she has laid out for you the cash flows associated with these decisions from the shareholders' perspective.