Consider the attachment and review the Carded Graphics, LLC: Sheeter Replacement De1cision By Murry Pitts; respond to the following questions.
1. What are the non-quantifiable and strategic benefits of replacing the sheeter?
2. Calculate an appropriate discount rate for evaluating the sheeter replacement decision.
3. Perform a net present value analysis of the sheeter replacement decision. While it is possible to perform such an analysis looking at the changes in all cost items on one spreadsheet, for this analysis please follow the process used in the Fonderia Di Torino case. That is, calculate the present value of future costs assuming the old sheeter is retained and do a separate calculation assuming the sheeter is replaced. The net present value of the replacement will be the difference between these two results.
Submission Format: Please prepare your answers in the Excel sheet. The model grading rubric standards will apply. Ensure that your name is clearly identifiable on the spreadsheet somewhere.
Attachment:- carded graphics student template_1.xlsx