Question: Tiger Car Corporation a leading Japanese automaker is considering a
Tiger Car Corporation, a leading Japanese automaker, is considering a proposal to locate a factory abroad in Tennessee. Although labor costs would rise by ¥33,000 per car, the time in transit for the cars (to be sold in the United States) would be reduced by 65 days. Tigers sell for ¥825,000, and TCC's cost of funds is 12.5%. Should TCC locate the plant in Tennessee?
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