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Transcription of this question: 4.Paul’s idea for 3D printing takes utopia into a secondary sector activity that contrasts withits usual tertiary sector activities. In order to produce a sufficient number of souvenirs,Utopia would need to buy ten 3D printers at $1000 each. There would be material costs andsignificant operating costs, as well as time and additional labour. Paul has produced a netcash flow forecast for the project (Table 1) assuming a five year life for the printers. He likesthe idea that each souvenir produced could be of a unique design and personalized. Some ofthe materials would be from recycled plastics obtained from waste at the resort. Recyclingwould reduce variable costs and it would be good for the resort’s environment and forUtopia’s caring image.Liza does not like the idea of 3D printing. She is concerned that the souvenirs may damageUtopia’s exclusive brand. She can see difficulties with recruiting someone with both thenecessary IT skills and the ability to make decisions about which types of souvenirs toproduce. She is particularly concerned about the impact on Utopia’s current suppliers ofsouvenirs. She thinks that 3D printing is more suited to larger organizations.John believes that the 3D printing technology will bring other benefits to his businesses.He can imagine decorations and other useful items being produced for the resort and itsoffices.Table 1: Net cash flow for the 3D printing projectYear Net cash flow (excluding capital2345Define the term variable cost.investment)$2000$3000$4000$4000$4000(a)(b)(c)(d)With reference to IJtopia, explain the differences bebueen secondary sector activitiesand tertiary sector activities.Using the information above, calculate the payback period and the average rate ofreturn (ARR) for the 3D printing project (show all your working).Using information from the case study, additional information above and your resultsfrom part (c), recommend whether IJtopia should proceed with the 3D printing project.[2][10]

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