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AmerisourceBergen Company, a U.S. firm, plans to invest a new project in either the United States or U.K. Once completed, it will continue 80% of
AmerisourceBergen Company, a U.S. firm, plans to invest a new project in either the United States or U.K. Once completed, it will continue 80% of the firm's total funds invested in itself. The remaining 20% of its investment in its business is exclusively in the U.S. Characteristics of the proposed project are forecasted for a 4-year period for both a U.S. and a British location as follows: Mean expected annual return on investment 18% (after taxes) Standard deviation of expected annual after-tax returns on investment Existing Business Correlation of expected annual after-tax returns on investment with after-tax returns of prevailing U.S. business 0.17 CHARACTERISTICS OF PROPOSED PROJECT IF LOCATED IN IF LOCATED IN THE UNITED THE UNITED STATES KINGDOM 28% 0.20 0.50 28% 0.23 -0.70 What will be your suggestion for AmerisourceBergen Company for the project location?
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