Total Marks: 10 1. A window frame manufacturer is searching for ways to improve revenue from its triple-insulated sliding windows, sold primarily in the capital city of Bangladesh. Alternative A is an increase in TV and radio marketing. A total of $300,000 spent now is expected to increase revenue by $60,000 per year. Alternative B requires the same investment for enhancements to the in-plant manufacturing process that will improve the temperature retention properties of the seals around each glass pane. New revenues start slowly for this alternative at an estimated $10,000 the first year, with growth of $15,000 per year as the improved product gains reputation among builders. They also need to buy an office building for $500,000 requiring 10 professional staff members. Monthly expenses for salaries, utilities, grounds maintenance, etc. are $0.1 million. Alternative B also requires a fully automated machine which has an initial cost of $50,000 and an estimated salvage value of $6,000 with a predicted life of 10 years. The MARR is i% per year and the maximum projection period is 10 years for either alternative. Choose the best alternative using - (a) Payback analysis, and (b) Break-even analysis **here, i8+0.1x-y+z = 81 y = Note: Please do not round up or down the value of i. [4] [6]