Question: Tom: I have a different issue. We recently initiated talks with Lucky Tower Inc. This is a company that has many cell-phone towers in

Tom: I have a different issue. We recently initiated talks with LuckyTower Inc. This is a company that has many cell-phone towers inthe US. We would like to purchase one of their towers so

Tom: I have a different issue. We recently initiated talks with Lucky Tower Inc. This is a company that has many cell-phone towers in the US. We would like to purchase one of their towers so that we can expand our presence internationally. As you know, we only have a market presence in Canada as we only have Canadian towers. Although we have long distance plans available for our customers, to obtain better reception for our customers, we would like to purchase a tower in Orlando. An advantage here is that TTI can also begin selling phone plans in Florida. I have provided some forecast cost and revenue figures in Appendix II. In your report, can you please determine whether it makes sense for us to invest in this tower? Please provide a quantitative and a qualitative analysis. We also want to know how long it will take to recover our investment. We hope that this does not take more than three years. The BOD has set specific criteria for capital expenditure requirements, including but not limited to an internal rate of return.

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