Please answer the questions of assignment 2 thx

Tom and Jerry would like your recommendation on which of the following two equipment investment opportunities they should take Heaven Pizzas just received a request for proposal (RFP) from a national fast food chain to provide upscale individual mini-pizzas packaged in clear plastic containers with the chain's label. The chain will pay Heaven Pizzas $1.50 per pizza for a 3-year agreement guaranteed for ?.2, 200,000 pizzas (with the possibility of extension depending on the success of the agreement). The pizzas would be made using existing recipes and ingredients but would require a large investment in special packaging machinery of $500,000 with a 10-year life. Heaven Pizzas would expect to achieve a 15% net profit margin on the agreement. Alternatively, as labeling is considered the primary bottleneck. Heaven Pizzas is also considering a new labeling machine (different from the machinery required in Option 1) with an estimated five-year life. Some variety packs require especially heavy labor to assemble the different flavors, snap on the plastic lid, and affix the labels in the right spot. The new machine would cost $500,000 and save an estimated $14, 500 per month in labor cost. It is also expected to increase throughput by $13,000 revenues per month with roughly 20% markup on incremental production costs (excluding new investment). Analyze each of these business opportunities from financial, strategic and risk perspectives. Use the following as a guide when making your recommendations: Assess the opportunities in terms of increased profitability and return on investment (ROI). What does this analysis suggest for Heaven Pizzas? Comment on the strategic, technical and risk factors that are relevant to this decision. What does this analysis suggest for Heaven Pizzas? What action do you recommend for Heaven Pizzas at this time