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An automobile manufacturing company in a foriegn Country X is considering the construction and operation of a large plant on the eastern seaboard of the
An automobile manufacturing company in a foriegn Country X is considering the construction and operation of a large plant on the eastern seaboard of the United States. Their MARR = 20% per year on a before-tax basis (This is a market rate relative to their currency in Country X.). It is estimated that the U.S. dollar will become weaker relative to the their curency during the next 10 years. Specifically, the dollar is estimated to be devalued at an average rate of 2.2% per year. What should be U.S. MARR for this company for econimc analysis
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