1.) JK Chemicals is investing on a new overseas chemical manufacturing plant. Several potential locations were considered and surveys and researches of the areas yielded the following data. Which location should the company choose to build their new chemical plant? Estimated time Annual Cost of Equipment Cost of Land Annual Cost of to finish in Labor years Site 1 $750,000 $500,000 $300,000 3 Site 2 $1,000,000 $400,000 $435,000 4.3 Site 3 $980,000 $453,000 $346,000 2.9 Site 4 $800,000 $237,000 $600,000 2.2 Site 5 $670,000 $344,000 $342,000 5.1 Site 6 $500,000 $230,300 $876,000 1.5 Site 7 $600,000 $543,000 $223,000 2.6 Site 8 $800,000 $293,000 $234,000 3.4 Site 9 $880,000 $300,000 $324,000 4.1 Site 10 $540,000 $123,000 $100,000 8
1.) JK Chemicals is investing on a new overseas chemical manufacturing plant. Several potential locations were considered and surveys and researches of the areas yielded the following data. Which location should the company choose to build their new chemical plant? Estimated time Annual Cost of Equipment Cost of Land Annual Cost of to finish in Labor years Site 1 $750,000 $500,000 $300,000 3 Site 2 $1,000,000 $400,000 $435,000 4.3 Site 3 $980,000 $453,000 $346,000 2.9 Site 4 $800,000 $237,000 $600,000 2.2 Site 5 $670,000 $344,000 $342,000 5.1 Site 6 $500,000 $230,300 $876,000 1.5 Site 7 $600,000 $543,000 $223,000 2.6 Site 8 $800,000 $293,000 $234,000 3.4 Site 9 $880,000 $300,000 $324,000 4.1 Site 10 $540,000 $123,000 $100,000 8
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![1.) JK Chemicals is investing on a new overseas chemical manufacturing plant. Several potential locations were
considered and surveys and researches of the areas yielded the following data. Which location should the
company choose to build their new chemical plant?
Estimated time
Cost of Land
Annual Cost of
Annual Cost of
to finish in
Equipment
Labor
years
Site 1
$750,000
$500,000
$300,000
3
Site 2
$1,000,000
$400,000
$435,000
4.3
Site 3
$980,000
$453,000
$346,000
2.9
Site 4
$800,000
$237,000
$600,000
2.2
Site 5
$670,000
$344,000
$342,000
5.1
Site 6
$500,000
$230,300
$876,000
1.5
Site 7
$600,000
$543,000
$223,000
2.6
Site 8
$800,000
$293,000
$234,000
3.4
Site 9
$880,000
$300,000
$324,000
4.1
Site 10
$540,000
$123,000
$100,000
8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe665bd54-6fb0-4adb-8dea-fb77573d9401%2F235f8f00-60ae-47a6-b788-3e5113064d75%2Fs8813xe_processed.png&w=3840&q=75)
Transcribed Image Text:1.) JK Chemicals is investing on a new overseas chemical manufacturing plant. Several potential locations were
considered and surveys and researches of the areas yielded the following data. Which location should the
company choose to build their new chemical plant?
Estimated time
Cost of Land
Annual Cost of
Annual Cost of
to finish in
Equipment
Labor
years
Site 1
$750,000
$500,000
$300,000
3
Site 2
$1,000,000
$400,000
$435,000
4.3
Site 3
$980,000
$453,000
$346,000
2.9
Site 4
$800,000
$237,000
$600,000
2.2
Site 5
$670,000
$344,000
$342,000
5.1
Site 6
$500,000
$230,300
$876,000
1.5
Site 7
$600,000
$543,000
$223,000
2.6
Site 8
$800,000
$293,000
$234,000
3.4
Site 9
$880,000
$300,000
$324,000
4.1
Site 10
$540,000
$123,000
$100,000
8
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