TABLE | CASH FLOWS Projection - Alternative 1
Year	Projected Demand (units/yr)			Projected Overall Capacity (units/yr)				Cash Inflow (outflow)
		Projected Work Center A Cap	Projected Work Center B Cap			Investment Cost	Earning beyond Base Case
0	10,000	10000	15000	10000		200000		(174000) [(200000)x0.870]
1	11,000	15000	15000	15000			1000x30= 30000	22680 [30000x0.756]
2	12,000	15000	15000	15000			2000x30= 60000	39480 [60000x0.658]
3	13,000	15000	15000	15000			3000x30= 90000	51480 [90000x0.572]
4	14,000	15000	15000	15000			4000x30= 120000	59640 [120000x0.497]
5	15,000	15000	15000	15000			5000x30= 150000	64800 [150000x0.432]

NPV = ___________64080

_______________

TABLE | CASH FLOWS Projection - Alternative 2
Year	Projected Demand (units/yr)			Projected Overall Capacity (units/yr)				Cash Inflow (outflow)
		Projected Work Center A Cap	Projected Work Center B Cap			Investment Cost	Earning beyond Base Case
0	10,000	10000	12500	10000		(80000)	0	(69600) [(80000x0.870]
1	11,000	12500	12500	12500		0	30000 (1000x30)	22680 [30000x0.756]
2	12,000	12500	12500	12500		0	60000 (2000x30)	39480 [60000x0.658]
3	13,000	12500	12500	12500		(200000)	75000 (2500x30)	(71500) [(200000-75000)x0.572]
4	14,000	15000	15000	15000		0	120000 (4000x30)	59640 [120000x0.497]
5	15,000	15000	15000	15000		0	150000 (5000x30)	64800 [150000x0.432]
c. Based on your calculations in parts a) and b), what action, if any, should the Sharp Company take? Moreover, if you could perform further decision analysis, is there another alternative any better than the existing ones, based on the information given so far? d. The companys operations manager (O) only projects that the demand grows an average of 1000 units/year to reach 13000 in year 3 but stays at13000 units in Years 4 and 5, as he is not so confident of the rosy forecast from M. If so, what would be your NPV results after performing analysis as in (a) and (b) above? e. Please explain why (and how) NPVs determined in a) and b) should or should not be used as the main basis for your decision.