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Kindly review the case and background to get a clear understanding of the problem and develop a suitable financial projection for issue #1, and prepare a report showing all the calculations and recommendations for appendix 1 only.

MGMT 8500: F21-Capstone v3 Appendix One (Construct or lease) Objective: Should WMM lease or construct their own production facility Option 1: Construct Costs to incur: Actual expenditure towards buying land, $ 200,000 construct building and getting ready for use Taxes, insurance, and repairs (per year) $ 25,000 Intended years of use 20 Projected market value in 18 years $1,100,000 Budgeted maximum expenditure towards buying S 500,000 land, construction of building and getting ready for use. Remainder in four payments of; $ 175,000 Option 2: Lease Intended years of use 20 First lease payment due now $ 100,000 Rest of the lease payments (years 2-17) $ 100,000 Operating costs to be paid by WMM Repairs (annual) $7,000 Maintenance (annual) $ 18,000 Initial one-time deposit, will be returned in year $ 10,000 20 Required rate of return 12% Methodology: The consulting team is proposing to perform a NPV analysis and determine the benefit to leasing or construction. Based on the analysis, they will recommend the preferred option (construction or leasing)