CMGT 505 Catholic University of America Cardinal Company Decision Analysis HW please answer the question clear and simply  I need two versions of the answe

CMGT 505 Catholic University of America Cardinal Company Decision Analysis HW please answer the question clear and simply 
I need two versions of the answer in separate  files please . Fall 2019 CMGT 505 Decision Analysis Midterm Exam
1. Briefly describe two Decision Traps and explain how a leader can try to avoid being
impacted by them. (15 Points)
2. You are the CEO of Cardinal Company (a small handheld technology firm) and have
just been briefed on a promising new product with projected cash flows detailed below.
Discuss your assessment of this project’s viability and profitability. Explain the
principles of evaluating cash inflows and outflows. Calculate payback period, total return
on investment, internal rate of return, and net present value. State any assumptions (i.e.
discount rate). Explain your reasoning behind those assumptions.
(20 Points)
Year
Revenue
Capital
Expenditures
$18,000,000
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$3,000,000
$4,000,000
$6,500,000
$7,500,000 $3,500,000
$7,500,000
$8,000,000 $1,500,000
$8,500,000
$9,000,000 $2,000,000
$9,500,000
3. The Monticello Room Company is a toy manufacturing company interested in
expanding its product line to the development and manufacturing of simple robots for to
help children with learning. In order to obtain the engineering and production capacity to
enter this market the company will either have to build a new facility or expand and
upgrade its current facilities. The development team has narrowed the alternatives to two
approaches to obtain the required capacity: (1) a new facility, at a cost of $45 Million, or
(2) expansion/upgrade of current facilities, at a cost of $25 Million. Both approaches
would require the same amount of time for implementation.
A rigorous study conducted by a team of economic and financial experts indicates that
over the required payback period, demand for the product will either be high or moderate.
Since high demand is considered to be somewhat less likely than moderate demand, the
probability of high demand has been estimated at 0.35. If demand is high, a new facility
would result in an additional $75 Million in revenue, but expansion/upgrade only an
additional $45 Million, due to lower maximum production capability. On the other hand
if demand is moderate, the comparable figures would be $30 Million for a new facility
and $20 Million for expansion/upgrade. (All costs and profit values are figured on a
present value, using an appropriate rate of return)
If Cardinal wishes to maximize its expected monetary value, should it obtain a new
facility or expand? Provide a decision tree or some other means of representing your
calculation. (15 Points)

Purchase answer to see full
attachment