Wayne's of Moose Jaw specializes in clothing for female executives living and working in the ﬁnancial district of Moose Jaw, SK. Allen's of MB specializes in clothing for women who live and
Work in the rural areas of Manitoba. Both ﬁrms are currently considering expanding their clothing
Line to encompass working women in the rural region of Northern Saskatchewan. Wayne's currently
Has a cost of capital of 11 percent while Allen's cost of capital is 9 percent. The expansion project
Has a projected net present value of $36,900 at a 9 percent discount rate and a net present value
Of - $13,200 at an 11 percent discount rate. Which ﬁrm or ﬁrms should expand into rural Northern
Saskatchewan?

Question

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The Answer of Wayne's of Moose Jaw specializes in clothing for female executives living and working in the ﬁnancial district of Moose Jaw, SK. Allen's of MB specializes in clothing for women who live and
Work in the rural areas of Manitoba. Both ﬁrms are currently considering expanding their clothing
Line to encompass working women in the rural region of Northern Saskatchewan. Wayne's currently
Has a cost of capital of 11 percent while Allen's cost of capital is 9 percent. The expansion project
Has a projected net present value of $36,900 at a 9 percent discount rate and a net present value
Of - $13,200 at an 11 percent discount rate. Which ﬁrm or ﬁrms should expand into rural Northern
Saskatchewan?

Wayne's of Moose Jaw Specializes in Clothing for Female Executives