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Mr Lite Is an Entrepreneur That Builds and Manages Organic

Question 60

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Mr. Lite is an entrepreneur that builds and manages organic vegetables in the United States. Mr. Lite recently developed a sustainability strategy to build a large greenhouse and warehouse in a recessed area in North Carolina. The greenhouse is expected to produce organic vegetables and Mr. Lite can sell the organic vegetables to the state to feed homeless people at the local community centers in the state. This project is expected to generate a minimum of 100 full-time employees. The cost to build the new greenhouse is $10,000,000 and the food that is produced at the greenhouse is expected to generate $1,500,000 in payments from the state.
Compute the payback period, in years. Should Mr. Lite build the new greenhouse? Is the strategy to build the new greenhouse an effective sustainability strategy? Why or why not?

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The payback period is 6.66 years. The pl...

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