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Kingbird Skateboards is considering building a new plant. Donald Al-Saigh, the company's marketing manager, is an enthusiastic supporter of the new plant. Helen Robinson, the

Kingbird Skateboards is considering building a new plant. Donald Al-Saigh, the company's marketing manager, is an enthusiastic supporter of the new plant. Helen Robinson, the company's chief financial officer, is not so sure that the plant is a good idea. Currently, the company purchases its skateboards from foreign manufacturers. The following figures were estimated for the construction of a new plant: Cost of plant $6,900,000 Annual cash inflows $6,900,000 Annual cash outflows $6,382,500 Estimated useful life 15 years Salvage value $1,150,000 Discount rate 8% Donald believes that these figures understate the true potential value of the plant. He suggests that by manufacturing its own skateboards the company will benefit from a "buy Canadian" patriotism. He

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