The manager of Walmart in Fayetteville is considering the possibility of providing flower delivery service in the Fayetteville area. She hires you as a consultant for this project. You suggested that Walmart should do some marketing research to understand the market needs. Walmart's spent $2,000 on a survey and the major findings include:

The estimated number of customers in the area is 400.

An average customer is willing to buy $30 worth of flowers per order and pay

$5 for delivery.

An average customer tends to place 10 flower orders per year.

To ensure on-time delivery Walmart needs to invest $30,000 on a new van, which will be straight-line depreciated over 10 years with $0 salvage value. The expenses of gas, repair, maintenance, and other operating costs incurred by this van will be $2,000 a year. Staff compensation will cost $50,000 a year. Advertising, promotion, and other sales expenses will cost $10,000 a year. The average variable cost of flowers is 60% of the flower sales. There is no variable cost assigned to delivery.

Question: What is your suggestion? "Go" or "No Go? How sensitive is your suggestion to the estimate of the market potential from your marketing research?