SUBMIT WORK FOR THIS QUESTION - CALL IT "KAYAK" Skyview Co. (AC) is a Canadian kayak manufacturer that has up to $425,000 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 $) Cost of building and equipment investment needed Burnaby, BC $415,000 Portland, OR $325,000 now Working capital investmeent needed now (released $0 $80,000 in year 5) Annual net operating cash inflows for 5 years $105,000 $75,000 Salvage value of equipment in year 5 $75,000 $0 Maintenance on equipment required in year 3 $8,500 $7,000 Additional information: - The equipment has a 5 year life. -The Oregon project would be the company's first manufacturing plant in the Unites States. 40% of Skyview's 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 company's 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. Skyview's discount rate is 8%