Sigma Instruments (P) Ltd. is considering three locations for its new factory Faridabad, Kolkata and Noida. The estimates of different costs for the three location options are shown in the following table Particulars Faridabad Kolkata Noida Transportation cost per unit (Rs.) 10 20 9 Cost of materials per unit (Rs.) 120 110 100 Taxes per year (Rs.) 40,000 35,000 45,000 Construction cost of the factory (Rs.) 5 million 4 million 4.7 million Electricity cost per year (Rs.) 22,000 15,000 25,000 Labour cost per unit (Rs.) 26 21 23

The company has financed the construction cost of the factory through a loan from the State Bank of India at 15 % interest per annum. Find the economically best location option for production of 5,000 10,000 units.