JUULI > LA MGT 607: MANAGING ORGANIZATIONAL PROCESSES (2) Homework: Chapter 4 Homework Score: 0 of 5 pts 8 of 117 complete) HW Score: 4 Problem 17A Alternative 1. Make the device themselves, which requires an initial outlay of 5550 000 in plant and equipment and a variable cost of $160 per unit Alternatve 2 Outsource the production, which requires no initial investment, but incursa per unit cost of $175 DEL Click the icon to view Table 1 Assuming small increases in the cost of electrical power compute the cash flows for each alternative. Over the next 5 years, which alternative maximizes the NPV of this project if the discount rate is 11% Determine cash flows for alternative 1 and fill in the table below. (Enter your response whole numbers. Be sure to includes for car dution) More info Demand in Year Cash inflow devices (outflow) 0 1 1,000 2 6000 Expected Demand of the Device in Units/Year 3 12000 Year Small increases in the Cost Large Increases in the of Electrical Power Cost of Electrical Power 4 17,000 1000 1000 5 22.000 6.000 8.000 12.000 17.000 17 000 25.000 122.000 35 000 O Search here a E 4 Ad