Requirement 1. Division is considering two double expansion Plan A would expand a current product line at a cost of $8,400,000 Expected cash flow me $1.525.000, without residue viliun at the under 10 years nou Pan B. Dion would ten producing a new prodit at a cost of 8,300.000 This plan is pled to generate net cash flow of $1.070.000 per year for 10 years, the stimated useful for the product linn Estimated radu vide for Plan B - 0000. Din Dusstraine depiction and more on are mutuo Como they are the NPV and the probability index for both Tegin by calling the back for both dan Round you to come XX Pune ya Car RA i Requirements - X Contribution margin ratio 64.1% 43.2% After expansion, the factory will have a production capacity of 4,400 machine hours per month. The plant can manufacture either 30 units of K707s or 65 units of G582s per machine hour. a. Identify the constraining factor for Division C. b. Prepare an analysis to show which product line to emphasize. 4. Division D is considering two possible expansion plans. Plan A would expand a current product line at a cost of $8,440,000. Expected annual net cash inflows are $1,525,000, with zero residual value at the end of 10 years. Under Plan B, Division D would begin producing a new product at a cost of $8,300,000. This plan is expected to generate net cash inflows of $1,070,000 per year for 10 years, the estimated useful life of the product line. Estimated residual value for Plan B is $990,000. Division D uses straight-line depreciation and requires an annual return of 8%. a. Compute the payback, the ARR, the NPV, and the profitability index for both plans. b. Compute the estimated IRR of Plan A. Use Excel to verify the NPV calculations in Requirement 4(a) and the actual IRR for the two plans. How does the IRR of each plan compare with the company's required rate of return? d. Division D must rank the plans and make a recommendation to Dawson's top management team for the best plan. Which expansion plan should Division D choose? Why? C. Print Done