6. The cotton company is considering starting a new textile company. There are two possible locations...

 

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6. The cotton company is considering starting a new textile company. There are two possible locations to choose from. a. Please give your recommendation on the site to build the new factory based on the below information. Life time of the project is estimated at 50 years and annual interest is considered at 12%. b. At which point of time will both projects be equivalent to each other? c. Please draw the BE diagram to show the point of breakeven. Site Land to buy Factory to Factory to Operational build rent costs Alexandria $350,000 per $550,000 per year year Tanta $1,550,000 $1,000,000 $450,000 per year 6. The cotton company is considering starting a new textile company. There are two possible locations to choose from. a. Please give your recommendation on the site to build the new factory based on the below information. Life time of the project is estimated at 50 years and annual interest is considered at 12%. b. At which point of time will both projects be equivalent to each other? c. Please draw the BE diagram to show the point of breakeven. Site Land to buy Factory to Factory to Operational build rent costs Alexandria $350,000 per $550,000 per year year Tanta $1,550,000 $1,000,000 $450,000 per year

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Cost of investment in Alexandria Variable cost of 900000per year3500005... View the full answer