Explain how a poultry firm could assess an investment in egg-powder processing before proceeding.

### The concept Investment in egg-powder processing adds a product line and requires equipment and production capability. The manager should establish the opportunity, gather relevant evidence, and estimate costs such as machinery, labor, processing, and marketing. Demand matters because a product that can be made may still be difficult to sell. The manager can compare the investment with alternatives, such as continuing to sell fresh eggs or adding another poultry product. The decision should account for uncertainty rather than treating projected returns as guaranteed. ### What a good answer covers - Identify the investment and its purpose. - Assess worker skills, equipment, and operating costs. - Evaluate demand, marketing, and expected returns. - Compare alternatives and judge feasibility and sustainability. ### Terms - **Investment**: committing resources now to establish or expand productive activity. ### Remember A new product needs both production feasibility and a market.