You are designing a new pharmaceutical facility. The criterion for profitability is 14% before taxes over ten years. The alternatives need not be included in the base design, but either one or both may be included if they are profitable. The values listed under the alternatives are in addition to the base case. All values are in $million.

Do you recommend the base case? Use what you consider to be the most appropriate method and explain your justification for using it.

Do you recommend either or both of the alternatives based on a nondiscounted analysis?

Do you recommend either of both of the alternatives based on a discounted analysis?

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Base Alternative 1 Alternative 2