2. (a) Calculate the incremental cash flows for the "abandon completely" alternative. (Be sure to consider the tax effects from the sale of the land, trucks, equipment, and factory. Use the cash flows from the "as is" option as the base position to calculate these incremental amounts.)
(b) What would the incremental cash flows be from then "abandon-but-lease" alternative? (Use the "as is" option as the base position.)
(c) Calculate the NPV's of these options.
(d) Based on these calculations and other information in the case, are these alternatives superior to the "as is" position? Which of the two is more consistent with the objective of value maximization? Explain.