5. Quick Logistics is considering two possible locations of a new warehouse to serve the central Arkansas area. The two cities considered for the location are Mayflower and Conway. The life of the warehouse is 5 years and MARR is 18%/year. Info for each location follows... Location Mayflower Conway Initial Outlay Net annual cash flow 320,000 110,000 490,000 170,000 a. What is the present worth of each location? b. What is the annual worth of each location? c. What location would you recommend and why?

5. Quick Logistics is considering two possible locations of a new warehouse to serve the central Arkansas area. The two cities considered for the location are Mayflower and Conway. The life of the warehouse is 5 years and MARR is 18%/year. Info for each location follows... Location Mayflower Conway Initial Outlay Net annual cash flow 320,000 110,000 490,000 170,000 a. What is the present worth of each location? b. What is the annual worth of each location? c. What location would you recommend and why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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