(ou are considering relocating your outdoor-equipment manufacturing plant and have harrowed your choices to four possible locations based on the availability of high quality abor, rail transportation, and an adequate distribution network. Based on the following costs and benefits associated with each location, use NPV to choose the most cost- effective location assuming MARR = 10%. Portland, OR Bend, OR Boise, ID Seattle, WA nitial cost (Year 0) $700,000 $800,000 $600,000 $1,000,000 Annual operations and 500,000 1,000,000 400,000 1,100,000 maintenance costs (Years 1 thru 5) Annual gross benefits (Years 1 thru 800,000 1,325,000 625,000 1,500,000 5) Salvage value 100000 125000 50000 200000

(ou are considering relocating your outdoor-equipment manufacturing plant and have harrowed your choices to four possible locations based on the availability of high quality abor, rail transportation, and an adequate distribution network. Based on the following costs and benefits associated with each location, use NPV to choose the most cost- effective location assuming MARR = 10%. Portland, OR Bend, OR Boise, ID Seattle, WA nitial cost (Year 0) $700,000 $800,000 $600,000 $1,000,000 Annual operations and 500,000 1,000,000 400,000 1,100,000 maintenance costs (Years 1 thru 5) Annual gross benefits (Years 1 thru 800,000 1,325,000 625,000 1,500,000 5) Salvage value 100000 125000 50000 200000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Determine if the selection of system 1 or 2 is sensitive to variation in the return required by management. The corporate MARR ranges from 8% to16% per year on different projects. Use tabulated factors or a spreadsheet, as requested by your instructor.
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This question is about engineering economics, I hopw you are able to help me.
WSM Corporation, Need assistance with Req A, Req B1, Req B2