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When submitting the completed project, please show all work and number each answer accordingly. When calculating the NPV use the following five columns (use for

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When submitting the completed project, please show all work and number each answer accordingly. When calculating the NPV use the following five columns (use for ALL NPV calculations): Item Year(s) Cash Flow Discount FactorPresent Value of Cash Flows Tony Skateboards is considering building a new plant. James Bott, the company's marketing manager, is an enthusiastic supporter of the new plant. Michele Martinez, the company's chief financial officer, is not so sure that the plant is a good idea. Currently the company purchases its skateboards from foreign manufacturers. The following figures ere estimated regarding the construction of the new plant. Estimated useful life $4,000,000.00 15 years Cost of plant Annual cash inflows Annual cash outfiows $4,000,000.00 Salvage value $2,000,000.00 $3,550,000.00 Discount rate 11% James Bott believes that these figures understate the true potential value of the plant. He suggests that by manufacturing its own skateboards the company will benefit from a "buy American" patriotism that he believes is common among skateboarders. He also notes that the firm has had numerous quality control problems with the skateboards manufactured by its suppliers. He suggests that the inconsistent quality has resulted in lost sales, increased warranty claims, and some costly lawsuits. Overall, he believes sales will be $200,000 higher than the projected above, and that the savings from lower warranty costs and legal costs will be $80,000 per year. Required: Compute the Cash Payback period for the project based on the original projections. Compute the net present value of the project based on the original projections. Compute the Cash Payback period for the project incorporating James' estimates of the value of the intangible benefits. Compute the net present value of the project incorporating James' estimates of the value of the intangible benefits. Comment on your findings. TextEdit File Edit Format View Window Help 2. The pap of Michele and Marke is considering geelital vestment proposal. Retrat de ae the projet de Salapeal expected to be er for the projet Deprecludes con by the lineshod The company's rate of return to the company's of 1 Cape AN Yeart . Ya M4.2003 w 13.000 SE Yes SILE The Red Comparede de projet rundt Commerce et project mana Compute the effe projet Camp the prindere he MacBook Air esc F1 20 F3 COD 000

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