After 3 months on the job, you have now been tasked to provide an investment recommendation to the Board of Directors of UCW. Currently, UCW is looking to lease an additional 2,000 square feet in Vancouver House. Assume that it currently has 10,000 square feet under lease and that the additional potential space is located on the 1st floor. Zoning for this space provides for multiple potential uses, including retail, restaurants and education. You are to propose a recommendation to lease the 2000 square foot space. What would you use use it for and would it provide a positive return on investment? In your analysis, use the knowledge gained in this course, including the concepts introduced on CVP, incremental and capital budgeting techniques. Highlight the key inputs and the basis for the assumptions/ estimates in arriving to your conclusion. You may identify any factors that you believe would contribute to your analysis and use external sources from industry to put together estimates. If a tax rate is needed, for example, provide a reasonable estimate. Market research on lease rates, etc.. while not specifically required, will contribute to the quality of the analysis. Please include an executive summary, analysis with any spreadsheets, conclusion and a summary/ list of assumptions made.

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As UCW is looking to lease the additional 2000 square foot space so as per my recommendation this ad... View the full answer