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Hershey is a famous candy maker located in Hershey, Pennsylvania. In 1971, they decided to create a large amusement park with a candy theme. a.
Hershey is a famous candy maker located in Hershey, Pennsylvania. In 1971, they decided to create a large amusement park with a candy theme. a. The park heavily advertised the company's candies to people waiting in line for the rides when it opened. From a marketing point of view, these same people may be more likely to purchase those candies when they return home. When considering the cash flows to opening the amusement park, should Hershey includes these future candy sales in the sales projections? Why or why not? (2-3 sentences) b. Amusement parks are a very different line of business from candy making. When calculating the required return for the amusement park, should the company have used the firm's WACC? Why or why not? (2-3 sentences)
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