Laurentian Bakeries Instruction: You need to analyze the case and come up with the recommendation with regards to the capital budgeting decision. Assumption: Inflation rate is 49% Discussion Guideline: 1. What is the dilemma faced by the management of Laurentian Bakeries? 2. Comment on the Laurentian Bakeries' 'Project Review Process. Is it a sound process? 3. What are the alternative investment opportunities? Why are those alternatives not chosen? 4. Comment on the expected incremental sales level (e.g. certainty level). 5. How would you incorporate the following information in your analysis? i. Sales price with inflation. li. The land cost ($250,000) ifi. Cost associated with administrative staff ($228.000) iv. Sales staff time in securing the contract ($40,000) V. Cost saving due to new line (50.019 per unit plus $138.000 per year) vi. Operating margin of 1536. vii. Working Capital: Reduction in average