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Instructions An evaluation is needed for a sock production project that requires an initial investment of $50,000,000, of which 80% corresponds to depreciable fixed assets, and 20% to working capital. The unit production cost is $10,000, and a unit sale value of $13,500 is estimated. The market study revealed a potential demand of 20,000 units for the first year. The fixed assets are depreciated straight-line over a useful life of 10 years. Operational expenses are estimated at $4,000,000 for the first year. The fixed costs amount to $10,000,000 for the first year. The following increments are estimated: sales increase by 2% annually, variable unit cost by 3% annually, unit sale price by 3% annually, operational expenses by 6% annually, and fixed costs by 5% annually. The project has a useful life of 5 years.

1. Build the project's cash flow. 2. Calculate the Internal Rate of Return (IRR) and determine if the project is profitable or not, considering an opportunity rate of 30%. 3. Indicate the control method you would establish to monitor the project and justify its implementation. 4. Mention the type of indicators you would use to evaluate the project's performance, providing reasons for your choices. 5. Indicate an organizational strategy you would implement during the project execution, explaining why it would contribute to a successful conclusion.

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