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A Toyota Co is considering allocate a manufacturing plant in Damman, KSA. After exhaustive marked research was carried out, the company guttered the presented
A Toyota Co is considering allocate a manufacturing plant in Damman, KSA. After exhaustive marked research was carried out, the company guttered the presented on the following table. Year Year 1 Year 2 Year 3 Year 4 Sales worldwide 6,000 Price $ 12 Variable Cost $3 Plant allocation (Fixed $ 55,122 cost) Total Profit NPV Note: all numbers are given on thousands of USD (1x10^3) 1.Toyota plans to expand its worldwide marked 8.4% yearly, for the 3 coming years. According to the KSA central bank the forecasted inflation will be 3.4% yearly for the next coming three years. The company will plan to increase the Toyota Corolla price 1.5% over the inflation. Fixed costs are expected to decrease by 7% per year. Develop a spreadsheet model to calculate the net present value of profit over a 4-year period then fill out the table. Assume a 5% discount rate.
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