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Part 1: You work in the Finance Department of the supermarket chain 'Super'. The company is planning to expand its business by offering online
Part 1: You work in the Finance Department of the supermarket chain 'Super'. The company is planning to expand its business by offering online orders and home delivery. The CEO and CFO need your expertise to decide whether it would be beneficial to pursue the new business project. The project will have a lifetime of 5 years and the top management will decide after these 5 years if this service will be offered permanently. Super plans to spend 750,000 now on advertising and 80,000 during the first year of the project. To set up the new service, Super has to invest in a fleet of delivery vans, the web portal, warehouse capacity, delivery crates etc. This initial investment will be approximately2,250,000. It is estimated that at the end of 5 years, the delivery vans and the delivery equipment can be sold for 10,000.
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