$1.$ Develop operating cash flow forecasts for the relevant lives of each type of tanning equipment using $100\%($best case$),80\%($most likely case$),$ and $50\%($worst case$)$ occupancy estimates for each tanning option. Assume straight line depreciation and a tax rate of $30\%.$

$2.$Calculate and comment upon the accounting, cash, and finan$-$cial break$-$even sales for the dome unit and the tanning bed unit.

$3.$Calculate the net present value, payback period, and the tradi$-$tional IRR for each tanning option under the various scenarios. What do the decision rules indicate?

$4.$Can Jenny evaluate this business project by assuming just a one$-$time purchase? Why or why not? What other evaluation methods should Jenny use?

$5.$If you decide to use the replacement chain method, how does the calculation and decision change?

$6.$What are some externalities, side effects, and other relevant issues that could affect the decision?

$7.$Based upon your analysis, which of the two units is $$too hot to handle?$$ Why?