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We need to make a $ 1,000,000 industrial investment where we can benefit from government incentives with a 5-year economic life in which sector and where you make the investment  and why you prefer this sector?  

Finance Jan 22, 2021

We need to make a $ 1,000,000 industrial investment where we can benefit from government incentives with a 5-year economic life in which sector and where you make the investment  and why you prefer this sector?
 

Expert Solution

I will be advocating for investment into the agricultural sector because agricultural sector are the major beneficiaries of the government incentives and the governmental subsidies as well, so agriculture sector will be offering up with the higher tax deduction as well as it will be helpful for company because it will be also having a better business reputation in form of non-financial factors and it will also help the company in order to maximize the rate of return.

Undertaking of the agricultural project will be lowering the cost of capital by providing of additional government subsidies as well as there will be tax deduction which will be available as well as there will be additional advertisement benefits which will be offered and the funds will be available at a cheaper rate so agricultural projects according to me best option for the company in order to maximize the rate of return for the five year project which will be having the government incentives.

I preferred this sector because this will be providing the company with additional rate of return and this will be government favoured as well as it will help in increasing of the business reputation.

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