Question: CARDED GRAPHICS, LLC: SHEETER REPLACEMENT DECISION (15%) Due date: 28 JUNE 2020 (Use Times New Roman, font 12 and double spacing. The assessment will

CARDED GRAPHICS, LLC: SHEETER REPLACEMENT DECISION (15%) Due date: 28 JUNE 2020

CARDED GRAPHICS, LLC: SHEETER REPLACEMENT DECISION (15%) Due date: 28 JUNE 2020 (Use Times New Roman, font 12 and double spacing. The assessment will be based on rubric grading schemes.) QUESTIONS TO THE CASE 1. What are the key success factors in the folding carton industry at the time of the case? How has Carded Graphics positioned itself to excel? 2. Describe the value drivers of the sheeter replacement decision? (15 marks) (10 marks) 3. Calculate an appropriate discount rate for evaluating the sheeter replacement decision. (20 marks) 4. What are the cash flows associated with keeping the old equipment and with replacing the old equipment? What are the resulting present values for both scenarios? (50 marks) 5. Which sheeter replacement decision do you prefer? With replacement or without replacement? Why? (5 marks)

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