Assignment Your company, (insert a company name of your choice here), is considering an opportunity to develop and introduce a new product which will trick kids into eating healthy foods, especially in the morning. The product is a breakfast treat which is actually made from all healthy ingredients and contains no added sugar..and it tastes good. Based on your superior knowledge of the market, you think that this product line will last about 5 years before the kids catch on and start eating sugar-coated sugar cubes again for breakfast (FUN FACT: when I was a kid, there was actually a cereal called Super Sugar Crisp). Getting up and running will cost the company $1,100,000 for capital equipment with another $100,000 for installation; there was also an additional $300,000 for research & development (R&D) expenses. The equipment is expected to have a useful life of 5 years (what a coincidence). The expected sales volumes are: Year 1 500,000 Year 2 800,000 Year 3 900,000 Year 4 800,000 Year 5 600,000 Your assignment is to figure out if this is a good idea and make a recommendation. A few facts Based on research, your target Sell Price for this product is $3.00 Your companys policy on profit margin is 25% on sell price Corporate income tax rate is 25.8% The companys hurdle rate is 15% You will finance the entire $1,000,000 but you do have it in cash if required; the financing will be at 9% and only 1 payment per year (5 total payments) for simplicity. A few questions Is this a worthwhile program to invest in? What is your recommendation? What assumptions (if any) did you make? Are there any ways to improve the program?