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Three alternatives have been considered to improve assembly along with do nothing alternative. The required rate of return is 8.5%. See the table below on

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Three alternatives have been considered to improve assembly along with "do nothing" alternative. The required rate of return is 8.5%. See the table below on description of each of the plan. The do-nothing plan is timeless as it can be placed into any timeline as alternative plans. There is no original cost or salvage value as we have the existing infrastructure to continue as is, whenever and forever. A. State if plans A, B, and C are overpriced or underpriced. B. Calculate the EUAW of plans A, B, and C. C. What is the payback period for each? What is the modified payback period for each? D. Over 10 years, determine the NPV and IRR of the "do nothing" as well as plans A, B, and C. E. Critical Thinking...Other than being the financial/economic bad choice in this example, why are companies that often resort to "do nothing" and opting against changing/adapting their business model end up failing? (i.e. think Blockbuster, ToysRUs, Sears, etc.) Three alternatives have been considered to improve assembly along with "do nothing" alternative. The required rate of return is 8.5%. See the table below on description of each of the plan. The do-nothing plan is timeless as it can be placed into any timeline as alternative plans. There is no original cost or salvage value as we have the existing infrastructure to continue as is, whenever and forever. A. State if plans A, B, and C are overpriced or underpriced. B. Calculate the EUAW of plans A, B, and C. C. What is the payback period for each? What is the modified payback period for each? D. Over 10 years, determine the NPV and IRR of the "do nothing" as well as plans A, B, and C. E. Critical Thinking...Other than being the financial/economic bad choice in this example, why are companies that often resort to "do nothing" and opting against changing/adapting their business model end up failing? (i.e. think Blockbuster, ToysRUs, Sears, etc.)

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