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Part 3: Vinaseed (Vietnam National Seed Joint Stock Company) is a leading company in the businesses of breeding, production, and sale of crop seed, and
Part 3: Vinaseed (Vietnam National Seed Joint Stock Company) is a leading company in the businesses of breeding, production, and sale of crop seed, and the provision of services for agro-forestry techniques with overseas market such as Laos, Cambodia and China. The Board of Directors is deciding whether they should invest in which new processing plant facilities of seed and agricultural products between the two regions below. The first processing plant facility will be located in the southwestern region. This initiative will put the company in the right position to become an industry leader in production. The initial investment of the project is $60,000,000 and the project is expected to have a lifetime of 20 years. The processing plant facility requires feasibility study and advertising campaign, etc with monthly spending of $1,900,000 is charged for agency service and competitor data during the project. The processing plant facility initiative is projected to bring a fixed revenue of $47,500,000 per year for the first 10 years and from the eleventh year onwards it increases $2,500,000 per year until the end of the project. The processing plant facility expansion initiative will rely on its existing processing plant located in northeast region. This initiative will help the company increase its production capacity and the initial cost of this project is estimated at $40,000,000 with no further monthly cost. This project is expected to last for 20 years and generate sales of $22,000,000 per year for the first six years and from the seventh year onwards it increases $2,900,000 per year until the end of its lifetime. The discount rate for both initiatives is 7.32%
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