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Case Study "Building a Business" MAS Manufacturing has demolished an old warehouse to make room for additional manufacturing capacity. The company...

1. Suppose the company’s required rate of return is 15%a. What is the present value of alternative A?b. What is the present value of alternative B?c. Which alternative would you recommend on the basis of your discounted cash flow analysis?2. Which alternative would you recommend if the company’s required rate of return was 20%?3. Suppose the company could rent a portion of its building for $48,000.00 per year for the first ten years if it choose the alternative A.a. If the company’s required rate of return is 15%, what is the net present value of Alternative A?b. On the basis of the new information, would you recommend Alternative A or Alternative B if the company’s required rate of return is 15%?

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