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Transcription of this question: 4.Paul’s idea for 3D printing takes utopia into a secondary sector activity that contrasts withits usual tertiary sector activities. In order to produce a sufficient number of souvenirs,Utopia would need to buy ten 3D printers at $1000 each. There would be material costsand significant operating costs, as well as time and additional labour. Paul has produced anet cash flow forecast for the project (Table 1) assuming a five year life for the printers. Helikes the idea that each souvenir produced could be of a unique design and personalized.Some of the materials would be from recycled plastics obtained from waste at the resort.This example of lean production would be good for the resort’s environment and for Utopia’scaring image. The cost of recycling is uncertain.Table 1: Net cash flow for the 3D printing projectYear Net cash flow (excluding capitalTable 2: Discount factorsYear Discount factor2345investment)$2000$3000$4000$4000$400023450.910.830.750.680.62Liza does not like the idea of 3D printing. She is concerned that the souvenirs may damageUtopia’s exclusive brand. She can see difficulties with recruiting someone with both thenecessary IT skills and the ability to make decisions about which types of souvenirs toproduce. She is particularly concerned about the impact on Utopia’s current suppliers ofsouvenirs. She thinks that 3D printing is more suited to larger organizations.John believes that the 3D printing technology will bring other benefits to his businesses.He can imagine decorations and other useful items being produced for the resort and itsoffices.(a)(b)(c)(d)Describe one method of lean production other than recycling.With reference to IJtopia, explain two benefits of having a strong brand.Using information from Table 1 and Table 2, calculate the net present value (NPV) forthe 3D printing project.Using information from the case study, additional information above and your resultsfrom part (c), discuss whether utopia should proceed with the 3D printing project.[2][10]

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