Expand Work Center A at the end of year 0 to 12,500 units per year,matching Work Center B,at a cost of $100,000,then expanding both Work Centers to 15,000 units per year at the end of year 3,at an additional cost at that time of $200,000.
The King Company will not consider projects that don't show a 5th year positive net present value using a discount rate of 15%.What are the pre-tax cash flows for the two alternatives compared to the base case of doing nothing for the next five years,and what action,if any,should the company take?

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The Answer of Expand Work Center A at the end of year 0 to 12,500 units per year,matching Work Center B,at a cost of $100,000,then expanding both Work Centers to 15,000 units per year at the end of year 3,at an additional cost at that time of $200,000.
The King Company will not consider projects that don't show a 5th year positive net present value using a discount rate of 15%.What are the pre-tax cash flows for the two alternatives compared to the base case of doing nothing for the next five years,and what action,if any,should the company take?

Expand Work Center a at the End of Year 0