Bravo Ltd is considering an expansion into a new product line;desserts. This means they will need new equipment and more space.They can obtain more space on their existing site by renting anadditional business unit. The additional rent will be £20,000 peryear. General fixed costs will increase by £1,200 per month. Thenew equipment required will cost £75,000. In addition, they willneed to invest £10,000 in working capital at the start of theproject, but this will be released at the end. Bravo Ltd have spent£15,000 on market research, which has revealed potential sales(units) for a five-year period (which is the planning time
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