Where should the manufacturing plant be located

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Reference no: EM132130634

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?

Reference no: EM132130634

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