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?