The company Food Producers SA, is a company that mainly produces products of processed foods such as snacks, granola and processed corn flakes, selling them in the markets of La Paz and Santa Cruz.

The company has had a negative behavior in recent years, according to the following results shown:

Year	2018	2019
Sales, $	2500000	2019000
Sales Cost,$	1980000	1683000
Expenses,$	350000	300000
Annual Profits,$	170000	36000

It has been decided to enter new markets in Oruro, Tarija, Sucre, Cochabamba and Trinidad, to bet improve business sales and profits. The company currently has bank debts, a with Bisa Bank, under the following conditions:

1. Bisa Bank, Capital: $800,000, Nominal rate 5.5% per year, capitalizable quarterly, term 3 years.

2. Mercantil Bank, Capital: $250,000, Nominal rate 8.0% per year, capitalized monthly, 1 year term.

As part of the plan is to buy a complete extrusion equipment of greater capacity, and two offers:

ZienZien China Offer: $1245600.-, Operating Costs. And annual maintenance $ 103800 Years of useful life 5,

Residual value in the market $ 103800.

Buhler Offer, English: $ 1937000.- Operating Costs. And annual maintenance $ 69200, Years of useful life 7,

Residual value: $ 173000.-

You have been hired to help prepare the financial budget for the next 5 years, according to the following data:

The new budget contemplates the following:

1. Sales growth over the previous year of $200000

2. Cost growth over the previous year of $140000

3. Expense growth over the previous year of $12000

a) Calculate the MARR of the company.

b) Using the present value analysis, with respect to the two equipment to be purchased, suggest which investment alternative to take, justify your answer, taking account the situation of the company, use all possible arguments that reinforce any management question.

c) Calculate the amount to be lent from the Mercantile Bank, to finance the purchase and operation of the new equipment.

d) Given the data of the new investment, calculate how much your annual income should be for recover the total investment?

e) Given the cash flow of the projected profits in the following 5 years, find the value present of this flow to MARR.

f) Also find the equivalent annual value for the 5 years of the MARR budget.