Find and solve the payback period and net present value

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ABC Corporation wants to relocate its new warehouse in order to save money. The expected savings (cash flow) in the next five years in each location are shown in the following tables. The investment required and cash flows depend on the location, access to highways, local taxes and other related costs associated with the location.

Problem 1: Calculate the Payback Period, Net Present Value (NPV), Internal Rate of Return (IRR) and profitability index of each location. Based on the four capital budgeting tools, create table, and based on your findings, recommend where ABC build its new warehouse. The locations are mutually exclusive, which means ABC can choose only one location.

Reference no: EM132735031

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