1) Use the basic data in the case to put together an analysis similar to Table 12.11 in the text. To determine earnings before depreciation and Taxes (EBDT), subtract projected operating expenses from projected sales. Use a tax rate of 34%

2) Determine the appropriate discount rate for the firm.

3) Make a decision on whether the project is feasible, based on net present value analysis.

4) What is the drawback to using a six-year time horizon for the project?