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1. john Hsu, the manager sponsoring the project to build a factory in the U.S., did not include the 1 1.5% loss per year in
1. john Hsu, the manager sponsoring the project to build a factory in the U.S., did not include the 1 1.5% loss per year in output of the French plant in Years 4-10. He claims that those cash ows are not part of his proposed project ant as such should not be included. 2. Bertrand Godard, who is proposing to expand capacity in Brittany, has not included the cost of the land [proceeds from selling the land) because he claims that the firm already owns it. However, you should note that the cash ows of the project include the sale of the land in year 10. Before conducting your analysis, think about whether these decisions are correct and, if not, adjust the cash flows accordingly. (Hint: you have learned about these issues in your managerial economics class.)
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