A manufacturer wishes to make and sell 1.1 million units per year of an aviation part for 12 years with interest fixed at 14% per year.

Option A is to build a manufacturing plant in the United States at a cost of $7 million, with end of-year expenses of $2 million per year. In order to meet environmental regulations, the manufacturer will need to invest $0.5 million for pollution control at the end of the fifth year.

Option B is to build a manufacturing plant in Mexico for $4 million, with annual end-of-year expenses of $1.2 million. There will be a duty charge of 30% of the selling price in the United States.

Find the aviation part selling price in the United States, at which the two options are equal.

**Must be done in EXCEL formulas. Hint: Reduce all costs and benefits to present value first