Problem 1 (20 points). The Aubey Coffee Company is evaluating the within-plant distribution system for its new roasting, grinding, and packing plant. The two alternatives are (1) a conveyor system with a high initial cost but low annual operating costs, and (2) several forklift trucks, which cost less but have considerably higher operating costs and lower expected life (see Table below). The decision to construct the plant has already been made, and the choice here will have no effect on the overall revenues of the project. The cost of capital for the plant is 8 percent, and the project's expected net costs are listed in the following table: Expected Net Costs Year Conveyor Forklift -200 -500 -50 -80 2 -80 -50 3 -50 -80 4 -50 -80 -80 5 -50 You cannot compA 6 -50 7 -50 NPVS 6/c the p if Mave umepunl -50 9 50 -50 10 a) What method would you recommend? Explain your recommendation 7he Frk GF b) By how much would the value of the company increase if it accepted the better project