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A US clothing manufacturing Company intends to start a new production facility to serve the domestic market and intends to keep it for 20 years,
A US clothing manufacturing Company intends to start a new production facility to serve the domestic market and intends to keep it for 20 years, then divest (sell off the facility). Company's management is considering two possible locations: domestic (in US) or international (Viet Nam). Each location presents its own characteristics: US Option Viet Nam Option Cost of installation ($) 1,800,000 500,000 100,000 50,000 Cost of labor ($/y) Gon labor ($/0) 3,000 1,000 150,000 100,000 Cost of raw material ($/yr) Gon raw material ($/yr) 1,000 500 30,000 120,000 Cost of transportation to market ($/y) G on transportation ($/yo) Cost of marketing & sales ($/yo) 500 1,000 50,000 50,000 G marketing & sales) 1,000 1,000 600,000 500,000 Sales revenues ($/yr) Gon revenues ($/yr) -10,000 -10,000 Divestiture of operation ($) 5,000,000 2,500,000 Question: 1. show the analysis of NPWs with graph 2. the precise value of i where the NPW of one option overtakes the other 3. show the ROI analysis with graph A US clothing manufacturing Company intends to start a new production facility to serve the domestic market and intends to keep it for 20 years, then divest (sell off the facility). Company's management is considering two possible locations: domestic (in US) or international (Viet Nam). Each location presents its own characteristics: US Option Viet Nam Option Cost of installation ($) 1,800,000 500,000 100,000 50,000 Cost of labor ($/y) Gon labor ($/0) 3,000 1,000 150,000 100,000 Cost of raw material ($/yr) Gon raw material ($/yr) 1,000 500 30,000 120,000 Cost of transportation to market ($/y) G on transportation ($/yo) Cost of marketing & sales ($/yo) 500 1,000 50,000 50,000 G marketing & sales) 1,000 1,000 600,000 500,000 Sales revenues ($/yr) Gon revenues ($/yr) -10,000 -10,000 Divestiture of operation ($) 5,000,000 2,500,000 Question: 1. show the analysis of NPWs with graph 2. the precise value of i where the NPW of one option overtakes the other 3. show the ROI analysis with graph
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