A printed circuit board manufacturer will construct a new plant. The potential sites have the...
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Accounting
A printed circuit board manufacturer will construct a new plant. The potential sites have the following estimates of income and cost. A plant on Site A would cost $30.8 million (mil) to build, produce $31 mil/year in revenues, $22.7 mil/year in expenses, and last 15 years. At Site B construction will cost $34.7 mil with $35.2 mil of revenues per year, $26.4 mil/year in expenses and will also last 15 years. Use the internal rate of return to determine which site should be selected. The MARR is 7% per year.
Which alternative would you choose as a base one? Site A or Site B
Analyze the difference between the base alternative and thesecond-choice alternative.
IRR Option B - Option A = ______%. (Round to one decimalplace.)
Which alternative should be selected? Site A or Site B
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