=+This investment idea is not original; Mercia investigated a similar project two years ago and discovered that there are some costs which have been ignored by the consult-

ants. First, the local council will require a payment of £100,000 one year after the completion of the construction for its inspection services and a trading and environ-

mental impact licence. Second, senior management will have to leave aside work on other projects, resulting in delays and reduced income from these projects amounting to £50,000 per year once the car park is operational. Also, the proposal is subject to depreciation of one-fiftieth (1/50) of the earthmoving and construction costs each year.

Proposal 2 is for a health club. An experienced company will, for a total cost of £9m payable at the start of the project, design and construct the buildings and supply all the equipment. It will be ready for Mercia's use one year after construction begins.

Revenue from customers will be £5m per annum and operating costs will be £4m per annum. The consultants allocate £70,000 of central general head office overhead costs for each year from the start. After two years of operating the health club Mercia will sell it for a total of £11m.