Blue Hawk Industries creates specialized running shoes. Through the unique, patented design, these shoes have been tested and proven to allow the person wearing them to run faster and jump higher. Currently, the company operates out of its only location in Dickinson, North Dakota. High demand has suggested the company expand its operations to additional locations. Management is contemplating three mutually exclusive projects to expand the business. Accounting staff has suggested and researched three possible cities for expansion: St. Louis, Billings, and Salt Lake City. Management expects an 9 percent return and a 4-year payback period.

The expansion includes the following projected cash flow streams. Posted above.

Answer the following. Include your responses in this document.

1. Would accept the St. Louis project if it was a standalone project, not dependent upon any other project?

1 point

Circle one of the following: YES NO

2. Specifically, why did you select the project? Include references and comparisons to the 7 /Tools.

4 points

3. Would accept the Billings project if it was a standalone project, not dependent upon any other project?

1 point

Circle one of the following: YES NO

4. Specifically, why would you select the project? Include references and comparisons to the 7 /Tools.

4 points

5. Would accept the Salt Lake City project if it was a standalone project, not dependent upon any other project?

1 point

Circle one of the following: YES NO

6. Specifically, why would you select the project? Include references and comparisons to the 7 /Tools.

4 points

7. Given the calculated results of the three potential projects, which project(s) (if any) would you undertake?

1 point

Circle the one you would accept if mutually exclusive St. Louis Billings Salt Lake City

8. Why did you select the project(s)? Include references and comparisons to the 7 /Tools

St. Louis	Type you name here
Required Rate of Return	9.00%
Required Payback Period	4.00	Years
Year	Undiscounted FCF	PVIF	Discounted FCF	Cumulative Discounted FCF
0
1
2
3
4
5
6
7 Tools	1. Net Present Value
	2. Payback Period
	3. Discounted Payback Period
	4. Average Accounting Return
	5. Internal Rate of Return
	6. Modified Internal Rate of Return
	7. Profitability Index
	Do not modify the 'Yellow' cells

Billings	Replace this with your name
Required Rate of Return	9.00%
Required Payback Period	4.00	Years
Year	Undiscounted FCF	PVIF	Discounted FCF	Cumulative Discounted FCF
0
1
2
3
4
5
6
7 Tools	1. Net Present Value
	2. Payback Period
	3. Discounted Payback Period
	4. Average Accounting Return
	5. Internal Rate of Return
	6. Modified Internal Rate of Return
	7. Profitability Index
	Do not modify the 'Yellow' cells

Salt Lake City	Replace this with your name
Required Rate of Return	9.00%
Required Payback Period	4.00	Years
Year	Undiscounted FCF	PVIF	Discounted FCF	Cumulative Discounted FCF
0
1
2
3
4
5
6
7 Tools	1. Net Present Value
	2. Payback Period
	3. Discounted Payback Period
	4. Average Accounting Return
	5. Internal Rate of Return
	6. Modified Internal Rate of Return
	7. Profitability Index
	Do not modify the 'Yellow' cells

Accessibility: Investigate Salt Lake City \begin{tabular}{|l|l|r|} \hline \multicolumn{3}{|c|}{ Description } \\ \hline \multicolumn{2}{|l|}{ Required Rate of Return } & \multicolumn{1}{c|}{9%} \\ \hline Required Payback Period & \multicolumn{1}{c|}{4 Years } \\ \hline January 1, 2024 & Setup Costs & 1,500,000 \\ \hline December 31, 2025 & Revenues & 900,000 \\ \hline December 31, 2026 & Revenues & 200,000 \\ \hline December 31, 2027 & Revenues & 300,000 \\ \hline December 31, 2028 & Revenues & 350,000 \\ \hline December 31, 2029 & Revenues & 200,000 \\ \hline December 31, 2030 & Revenues & 100,000 \\ \hline \end{tabular} Accessibility: Investigate Salt Lake City \begin{tabular}{|l|l|r|} \hline \multicolumn{3}{|c|}{ Description } \\ \hline \multicolumn{2}{|l|}{ Required Rate of Return } & \multicolumn{1}{c|}{9%} \\ \hline Required Payback Period & \multicolumn{1}{c|}{4 Years } \\ \hline January 1, 2024 & Setup Costs & 1,500,000 \\ \hline December 31, 2025 & Revenues & 900,000 \\ \hline December 31, 2026 & Revenues & 200,000 \\ \hline December 31, 2027 & Revenues & 300,000 \\ \hline December 31, 2028 & Revenues & 350,000 \\ \hline December 31, 2029 & Revenues & 200,000 \\ \hline December 31, 2030 & Revenues & 100,000 \\ \hline \end{tabular}