$3.$ Question

In the scenario analysis sheet within this document, you will find the Module $5$ activity submission template that needs to be populated based on the content provided below.

Informatio

Shoo, a niche luxury American footwear brand, is interested in expanding its operations into Africa. It has collected data that will assist in performing a scenario analysis.

In this exercise, you are part of the decision$-$making team. Shoo has to decide between setting up operations in South Africa, Zambia, or Cameroon. Each of these countries has different tax rates and interest rates, as follows:

Note: All prices are in US dollars.

If Shoo sets up operations in South Africa, it will be able to sell $57,500$ units in its first year at a selling price of USS$899.$ It will cost USS$615$ to produce a unit, and Shoo would have to spend US$\backslash$$$1,500,000$ on marketing and advertising costs, and would have to take out a loan of USS$12,500\mathrm{.}000.$

If Shoo sets up operations in

If Shoo sets up operations in Zambia, it will be able to sell $53,750$ units in its first year at a selling price of US$\backslash$$$750.$ It will cost US$\backslash$$$435$ to produce a unit, and Shoo would have to spend US$\backslash$$$1,250,000$ on marketing and advertising costs, and would have to take out a loan of US$\backslash$$$8,000,000$

If Shoo sets up operations in Cameroon, it will be able to sell $88,000$ units in its first year at a selling price of US$\backslash$$$975.$ It will cost US$\backslash$$$798$ to produce a unit, and it would have to spend US$\backslash$$$1,350,000$ on marketing and advertising costs, and would have to take out a loan of US$\backslash$$$8,500,000.$

You are required to perform a scenario analysis, before recommending which country Shoo should set up operations in$.$