Need help to answer the following question based on the describre problem

The contract offered by Take Bros. is a favorable one, which Raleigh soup plans to accept. Raleigh management has set a 15% before-tax minimum attractive rate of return as the criterion for any of the projects. Which projects should be undertaken?

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The Raleigh Soap Company has been offered a s-year contract to manufacture and package a leading brand of soap for Taker Bros. It is understood that the contract will not be extended past the 5 years because Taker Bros. plans to build its own plant nearby The contract calls for 10,000 metric tons (one met ric ton equals 1000 kg) of soap a year. Raleigh normally produces 12,000 metric tons of soap a Project 4: Build a new warehouse. The existing warchouse wll be inadequate for the greater production. It is estimated that 400 needed. A new warehouse can be built on a lot beside the existing warehouse for $225,000, including the land. The annual taxes, insurance and other ownership costs would be $5000a year. It is believed the warehouse could be sold at the end of 5 years for $200,000. square meters of additional warehouse i year, so production for the 5-year period would be increased to 22,000 metric tons. Raleigh must decide what changes, if any, to make to accommodate this increased production. Five projects are under consid eration Project 5: Lease a warehouse. An alternative to building an additional warehouse would be to lease wareiouse space. A suitable warehouse one mile away could be leased for $15,000 per year. The $15,000 includes taxes, insur ance, and so forth. The annual cost of movinjg Projec : Increase liquid storage capacity Raleigh has been forced to buy caustic soda in tank truck quantities owing to inadequatc storage capacity. If another liquid caustic soda tank is installed to hold 1000 cubic meters, thc caustic soda may be purchased in railroad tank car quantities at a more favorable price. The result would be a saving of 0.1 per kilogram of soap. The tank, which would cost $83,400 has no net salvage value. materials to this more remote warehouse would be $34,000 a year Project 2: Acquire another sulfonation unit The present capacity of the plant is limited by the sulfonation unit. The additional 12,000 met ric tons of soap cannot be produced without atn additional sulfonation unit. Another unit can be installed for $320,000 The contract offered by Taker Bros. s a favorable one, which Raleigh Soap plans to accept. Raleigh management has set a 15% before-tax attractive rate of return as the criterion for any of the projects. Which projects should be undertaken? minimum Project 3: Expand the packaging department. With the new contract, the packaging depart ment must either work two 8-hour shifts or have another packaging line installed. If the two-shift operation is used, a 20% wage premium must be paid for the second shift. This premium would amount to $35,000 a year. The second pacik aging line could be installed for $150,000. It would have a $42,000 salvage value at the end of 5 years The Raleigh Soap Company has been offered a s-year contract to manufacture and package a leading brand of soap for Taker Bros. It is understood that the contract will not be extended past the 5 years because Taker Bros. plans to build its own plant nearby The contract calls for 10,000 metric tons (one met ric ton equals 1000 kg) of soap a year. Raleigh normally produces 12,000 metric tons of soap a Project 4: Build a new warehouse. The existing warchouse wll be inadequate for the greater production. It is estimated that 400 needed. A new warehouse can be built on a lot beside the existing warehouse for $225,000, including the land. The annual taxes, insurance and other ownership costs would be $5000a year. It is believed the warehouse could be sold at the end of 5 years for $200,000. square meters of additional warehouse i year, so production for the 5-year period would be increased to 22,000 metric tons. Raleigh must decide what changes, if any, to make to accommodate this increased production. Five projects are under consid eration Project 5: Lease a warehouse. An alternative to building an additional warehouse would be to lease wareiouse space. A suitable warehouse one mile away could be leased for $15,000 per year. The $15,000 includes taxes, insur ance, and so forth. The annual cost of movinjg Projec : Increase liquid storage capacity Raleigh has been forced to buy caustic soda in tank truck quantities owing to inadequatc storage capacity. If another liquid caustic soda tank is installed to hold 1000 cubic meters, thc caustic soda may be purchased in railroad tank car quantities at a more favorable price. The result would be a saving of 0.1 per kilogram of soap. The tank, which would cost $83,400 has no net salvage value. materials to this more remote warehouse would be $34,000 a year Project 2: Acquire another sulfonation unit The present capacity of the plant is limited by the sulfonation unit. The additional 12,000 met ric tons of soap cannot be produced without atn additional sulfonation unit. Another unit can be installed for $320,000 The contract offered by Taker Bros. s a favorable one, which Raleigh Soap plans to accept. Raleigh management has set a 15% before-tax attractive rate of return as the criterion for any of the projects. Which projects should be undertaken? minimum Project 3: Expand the packaging department. With the new contract, the packaging depart ment must either work two 8-hour shifts or have another packaging line installed. If the two-shift operation is used, a 20% wage premium must be paid for the second shift. This premium would amount to $35,000 a year. The second pacik aging line could be installed for $150,000. It would have a $42,000 salvage value at the end of 5 years