Question: Instructions: Read the information below regarding a fictional situation and then answer all the questions that follow. Write your responses as if an employer will

 Instructions: Read the information below regarding a fictional situation and thenanswer all the questions that follow. Write your responses as if an

Instructions: Read the information below regarding a fictional situation and then answer all the questions that follow. Write your responses as if an employer will use your answers to determine whether to hire you for a job for which you have applied. Information: A major automotive manufacturer has announced that it will close a manufacturing plant in Ohio. The manufacturer has seen declines in automobile sales and believes that shutting down the factory will help solidify its financial position. If the plant if shut down, there will be large expenses in the first and third years, but there will also be significant cost savings in the other years, so that the cash flow stream for the proposed shutdown is as follows: Year o -$7,000,000 Year 1 Year 2 $12,000,000 $5,000,000 Year 3 Year 4 $5,500,000 $5,000,000 Year 5 $5,000,000 Cash Flow The manufacturer's cost of capital is 6.5%. 3. Using tools you have learned in this course, analyze the problem. a. What tool(s) is(are) most appropriate for this situation? b. What information do you gain from applying the tool(s)? Based only on the financial analysis, what decision should the manufacturer make? Why? c

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