Your company is considering two projects and has estimated the following cash flows:

Year Project A Project B

0 -15,000 -20,000

1 10,000 10,000

2 10,000 18,000

Attempt 1/1 for 10 pts.

Part 1

If project B expands your manufacturing capacity by building a separate factory, what is the relevant cash flow for evaluating project B in year 2?

Submit

Attempt 1/1 for 10 pts.

Part 2

If project B replaces an existing factory (project A), what is the relevant cash flow for evaluating project B in year 2?

Submit

Attempt 1/1 for 10 pts.

Part 3

If project B replaces an existing factory (project A), what is the relevant cash flow for evaluating project B in year 0?