Salesforce is considering expanding into the South American Market. You plan to acquire a Company down there at a $15 million purchase price. It is your job to decide whether investments like these will earn enough return to compensate them for the risk of investing, particularly in South America where countries are diverse in terms of economic development. You estimate in the first 3-years of ownership the business will not earn positive cash flow as all profits will be reinvested back into the business. Starting in year 4, you forecast the Company will earn $2 million/year payable semi-annually ($1,000,000/period). Earnings are estimated to increase annually at a rate of 25%/year. Meaning, that in year 5, youll get $2,500,000 payable semi-annually ($1,250,000/period) , etc. At the end of year 6, you plan on selling the business and believe you can sell it for $30 million at that time. You show the numbers to your boss and she is very excited because she sees this as a 100% return on investment (bought the company for $15 million and sell it for $30 million). Do you agree? Is this a good investment for Salesforce to make?