A firm is considering moving its manufacturingplant from
Chapter , Problem 8-32(choose chapter or problem)
A firm is considering moving its manufacturingplant from Chicago to a new location. The indus-trial engineering department was asked to identifythe various alternatives together with the costs torelocate the plant, and the benefits. The engineersexamined six likely sites, together with the do- nothing alternative of keepingthe plant at its presentlocation. Their findings are summarized as follows:First Uniform AnnualPlant Location Cost ($000s) Benefit ($000s)Denver$300 $ 52Dallas550137San Antonio 450117Los Angeles 750167Cleveland 15018Atlanta20049Chicago00The annualbenefitsare expected to be constantoverthe 8-year analysis period. a)Construct a choice table for interest rates from0% to 100%.(b)If the firm uses 10% annual interest in its eco-nomic analysis, where should the manufactur-ing plant be located?
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