1. A pipe company is planning to buy a new pipe production line. The costs of 2 alternative offers for this purpose are given below. LINE I: The purchase price is 2,500,000 TL. According to the payment plan, 500,000 TL of the purchase cost will be paid as cash in advance and the remaining will be paid with 5 equal installments. Annual production is 40,000 tons and is expected to decrease by 1% each year. 100 kWh of electricity and 2.5 m of natural gas are consumed to produce 1 ton of pipe. The salvage value is 300,000 TL and its economic life is 10 years. LINE II: The purchase price is 2,000,000 TL. It will be paid in equal annual installments in 8 years. The annual production amount is 35,000 tons. 120 kWch of electricity and 4 m of natural gas are consumed to produce 1 ton of pipe. Electricity consumption is expected to increase by 4% every year after the first 5 years. The salvage value is 100,000 TL and its economic life is 13 years. The sales price of the pipe produced is 6 TL/kg and the sales price will increase by 15% every year. The raw material price is 2.5 TL/kg and will increase by 12% annually. Electricity price is 0.7 TL/kW.h and natural gas price is 1.1 TL/m. The annual price escalations of both energy sources are 17%. The annual discount rate is 22% and the interest rate is 16%. According to this; a) Form cash flow. (30 P) b) Determine which of the lines is economically viable using the present value method. (50 P) c) Determine which of the lines is economically feasible using the annual value method. (20 P) NOTE: Sales revenues, raw material, electricity and natural gas costs depend on the amount of production