Question: Please help me You have a proposal for entering a new market. Your data for the next 7 years follows. Should you recommend your proposal

Please help me

You have a proposal for entering a new market. Your data for the next 7 years follows. Should you recommend your proposal to your boss? Why/Why not? Establishing a sales agency costs 10.000.000 kr; Developing distribution network costs 2.000.000 kr; Market research & cultivation costs 1.000.000 kr for a total initial investment cost (in year 0) of 13.000.000 kr. Your company's cost of capital (discount rate) is 6%. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Marketing 1 000 000 kr. 250 000 kr. 250 000 kr. 250 000 kr. 200 000 kr. 200 000 kr. Sales hours used (DKK1500/hour) 2 300 2 500 3 000 3 500 3 500 3 500 Sales revenue expected 2 800 000 kr. 5 600 000 kr. 8 400 000 kr. 16 700 000 kr. 3 600 000 kr. 5 500 000 kr. Sell assets and leave market 3 000 000 kr. Part B: After completing the above, you are told that the company estimates an 80% retention rate for this market and that these Danish cash flows will be brought back to the home country. NOTE: the home country is your home country so assume your country's currency will appreciate against the Dkr annually by 1,5%. (Any country with EUR.)

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