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He is fairly confident in the long-term market research that his sales team has conducted which determined there are 3 possible scenarios for the level
He is fairly confident in the long-term market research that his sales team has conducted which determined there are 3 possible scenarios for the level of demand. The estimates are that there is a 20% chance that demand will be low, a 40% chance that demand will be medium, and a 40% chance that demand will be high. The small expansion would cost $5 million to build. If demand is low, he expects to receive an additional $3 million in discounted revenues (present value of future revenues) with the new facility. If demand is medium, he expects an additional $6 million. If demand is high, he expects an additional $6 million with the small facility. The large expansion would cost $8 million to build. If demand is low, he expects to receive an additional $3 million in discounted revenues (present value of future revenues) with the new facility. If demand is medium, he expects an additional $6 million. If demand is high, he expects an additional $12 million with the large facility. There is also a new government program that the Ontario Government is launching in 2024 to support the expansion of Ontario businesses through grants. Mr. Ralph believes that
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