3 Parts A, B, and C Highland Park Poultry Products (HPPP) processes chickens and other poultry for sale to restaurants and gourmet food stores in and around New Brunswick. They are considering expanding their facilities so that they can supply restraurants and gourmet food stores throughout Northern New Jersey. HPPP's market research supports their expectation that their high quality products should allow them to gain market share in their expanded market. Management has developed the following cash flow projections. ($s in 000s) 1 2 3 4 5 6 Do Nothing $3,785 $4,050 $4,280 $4,440 $4,550 $4,635 Expand $3,345 $3,925 $5,005 $6,125 $8,050 $8,450 Plant expansion will require Year 0 spending of $4,325 Whether or not HPPP expands, they will need to spend $6,350 in Year 0 to clean up the waste water from their facility. HPPP's CFO officer has determined that Do Nothing can be valued using a required rate of return of 7% Part A (i) What is the value of HPP's business if they do nothing? (ii) What required rate of return should HPPP use to evaluate expanding their capacity? Choose one. 4% 7% 12% 18% (iii) Explain your choice. (iii) Should HPPP expand their capacity? (Use