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Question - A firm is considering moving its manufacturing plant from USA to a new location in Qatar. The Industrial Engineering Department was asked to identify the various alternatives to relocate the plant. The engineers examined four likely sites together with the do-nothing alternative of keeping the plant at its present location. Their findings are summarized as follows:
Plant Location
First Cost ($)
Uniform Annual Income ($ per year)
1. A
300,000
58,300
2. B
450,000
89,600
3. C
550,000
107,000
4. D
200,000
33,490
The analysis period will be 8years. If the firm uses a MARR of 10% per year in its economic analysis, where should the manufacturing plant be located?
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