Question Five (6 Pts.): Your company is considering two new opportunities Opportunity One: Initial investment of $70,000, revenue of $2,000 a month and costs of $500 a month Opportunity has a life of 6 years Salvage svenus of the investment is estimated at $10,000 Opportunity Two: Initial investment is $35,000, revenue of $20,000 a year and a cost of $7.000 a year Opportunity has a life of 3 years Salvage cost of the investment is estimated at $5.000 Other opportunities There are other opportunitios within the company that will generate at least 6.2% per year Assignment Management wants you to analyze the three opportunities and make a recommendation including analytical analysis, graphical representation and discussion of why you made your recommendation Management likes to consider PW and IRR analysis methods but is open to other analysis methods What assumptions of which you should inform management based on your analysis? What other questions would you want to ask before making a recommendation? What is your recommendation Why? Question Five (6 Pts.): Your company is considering two new opportunities Opportunity One: Initial investment of $70,000, revenue of $2,000 a month and costs of $500 a month Opportunity has a life of 6 years Salvage svenus of the investment is estimated at $10,000 Opportunity Two: Initial investment is $35,000, revenue of $20,000 a year and a cost of $7.000 a year Opportunity has a life of 3 years Salvage cost of the investment is estimated at $5.000 Other opportunities There are other opportunitios within the company that will generate at least 6.2% per year Assignment Management wants you to analyze the three opportunities and make a recommendation including analytical analysis, graphical representation and discussion of why you made your recommendation Management likes to consider PW and IRR analysis methods but is open to other analysis methods What assumptions of which you should inform management based on your analysis? What other questions would you want to ask before making a recommendation? What is your recommendation Why