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PROJECT DETAILS (Note: all amounts are in Canadian dollars) Bio-Fuels Generation Incorporated (BFG) is a private company that produces biomass- based diesel fuel from feedstocks, including inedible corn oil, used cooking oil, and inedible animal fat. The diesel fuel is then sold to distributor. The company is also actively involved in research into the production of other types of biomass-based fuels Recently, the research team had a breakthrough and discovered a new production process that will produce fuel from algae at a relatively low production cost The benefits of using algae asa feedstock for fuel production have long been known and include the fact that algae can be grown in large quantities in wastewater and can be genetically manipulated to produce many different types of fuel aut the main disadvantage to commercialization has been that algae production requires large amounts of water, nitrogen, and phosphorous, resulting in higher greenhouse gas emissions to produce algae than is saved by using it as a fuel, in addition to very high production cost. However, the research team has recently discovered a process that will significantly reduce the amount of these inputs required resulting in a very cost- effective production proces. is owned by Eleanor Whiteman, a renowned scientist in the research of biomass- based fuels, and her husband, Michael Whitemarn Eleanor owns 300 1000 common shares and Michael owns 100,000 common share. Currently, the company has three directors on its board Eleanor, Michael, and Sherry LePage, a long-time friend Sherry has a PhD in Biology, specializing in algae, and teaches at the local universitbr With her background and experience Sherry advises on the research conducted at the firrm She is very interested in this project of using algae to produce fuel Eleanor is very excited about the research results because this has been her area of research for the past 20 year. now needs financing to commercialize this algae production proces. Michael is also excited about the company expanding into this area but has some concerns regarding how the financing should be raised and other finance issues affecting the companjr You currently work as a financial analyst for HRY Consultants lncz has hired your company in the past to assist with a variety of financial issue. Yesterday, Eleanor called you, asking about work she would like completel The following appendixes provide additional information about and its financial Appendix I 20X1 and 20X2 financial statements Appendix II Current capital structure and financing proposals Appendix Ill Assumptions for the capital budget analysis