Hummer Seed Company You have been hired as the nancial administrator of Homer Corp., an agricultural seed broker in Northern Utah. Mr. Bullet], the president, has asked you to decide whether or not the company should purchase for $450,000 a warehouse and the seed dishihntion rights for a major seed producer, for farms estending from Idaho into Oregon. It the regional sales area is expanded, it is estimated that an investment of $100,000 in working capital 1will he required The company expects to operate in the expanded area for 10 years, after which time they anticipate being able to sell the lights for $000,000. Sales revenues are forecast at $400,000 per year for ve years, and $300,000 per year thereafter. |[liperating expenses will be $50,000 annually, and cost of goods sold amount to 00% of sales. The full cost of the warehouse and regional sales area will he depreciated on a straight line hasis over 10 years. If the rm acquires the assets in question, it will be able to dispose of certain fixed assets that it presently owns. These have a net hook value of $110,000, a remaining (straight line) depreciahle life of 3. years, and could he sold for $30,000. Mr. Builen estimates the required rate of return for Hummer to he 14 percent. Assume a corporate income tax rate of 30 percent with a capital gains rate of 15%. Complete a Ii-iP'iuT and [RR analysis on the project and answer the questions on (SERVES