Skyview Co. (AC) is a Canadian kayak manufacturer that has up to $325,000 to invest in either a new plant in Portland, Oregon or Burnaby, British Columbia. The following information has been gathered on the two project alternatives: All funds are CDN $

	Burnaby	Oregon
Cost of building and equipment investment needed now	$325,000	$225,000
Working capital investment needed now (released in year 5)	$0	$60,000
Annual net operating cash inflows for 5 years	$85,000	$65,000
Salvage value of equipment in year 5	$35,000	$0
Maintenance on equipment required in year 3	$5,500	$6,000

Additional information:

- The equipment has a 5 year life.

-The Oregon project would be the companys first manufacturing plant in the Unites States. 40% of Skyviews distributors are located in California and Oregon. Skyview expects that due to similarities in Westcoast culture there should not be any significant challenges with the new plant; although Mark Peterson, head of Human Resources, has suggested planning would be necessary for the large Spanish speaking workforce.

- The Burnaby project is located within 25 kilometers of the companys head office. Due to the pandemic, there has been a large increase in outdoor activities including kayaking and the company expects to see continued growth. There have been some rumblings in the current workforce of unionization, but nothing formal has occurred.

- Both projects will be implemented with a five year plan at which time the company will reassess the viability. Any working capital investment will be released in year 5 and invested elsewhere. Skyviews discount rate is 10%

REQUIREMENTS: (do not leave Connect blank, input your final NPV for 1 and 2)

3. Consider the NPVof both projects and provide a qualitative analysis on Skyviews decision between Burnaby and Oregon projects. Make sure to list pros and cons of each project and conclude on which venture is better, from a qualitative perspective. (a minimum of 2 pros and 2 cons per project)