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The first decision Reza is contemplating involves the company's expansion plans. Management is considering opening a Vancouver-based store which would sell directly to customers. Getting

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The first decision Reza is contemplating involves the company's expansion plans. Management is considering opening a Vancouver-based store which would sell directly to customers. Getting the store to opening point next year would cost an estimated $280,000, which can be drawn on the company's line of credit at 5%. However, Reza estimates that the store will generate revenues of $150,000 annually for eight years. He is especially excited about the higher margins realized by selling directly- the manufacturing costs would only add up to 27%% of revenues! However, there would also be $40,000 in salary expenses and $3,000 a month in rent. Rezs is wondering if Beach Gear should proceed with opening the store, taking into consideration all factors, including those he may not have thought of

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