Annual interest in its economic analysis

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Reference no: EM131808991

A firm is considering moving its manufacturing plant from Chicago to a new location. The industrial engineering department was asked to identify the various alternatives together with the costs to relocate the plant, and the benefits. The engineers examined six likely sites, together with the donothing alternative of keeping the plant at its present location. Their findings are summarized as follows:

2445_manufacturing plant from Chicago.png

(a) Construct a choice table for interest rates from 0% to 100%.

(b) If the firm uses 10% annual interest in its economic analysis, where should the manufacturing plant be located?

Reference no: EM131808991

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