Apply the relevant investment appraisal techniques to the following scenarios to

conduct an investment appraisal for ABC Ltd$.$ The current interest rate is $10\%.$ The

options available are:

USA: The estimated running expenses per annum amount to $($GBP$)210,000.$ The

expected revenue would amount to $($USD$)$ $$700,000$ per annum. In addition, an

approval fee of $($GBP$)$

$22,000$ has to be paid in advance for the company to be able to trade within the

country on an annual basis.

France: It is expected that the running expenses would amount to $190,000$ per

annum and the annual turnover is expected to be $($Euro$)450,000.$ The organisation

will have to pay an approval fee of $($GBP$)25,000$ in advance for the company to be

able to trade within the country on an annual basis. In addition, the organisation will

also have to make a one$-$off Royalty Fee payment of $($GBP$)25,000,$ regardless of

the number of operating years.

Switzerland: The estimated running expenses per annum amount to $($GBP$)$

$200,000$ while the expected revenue would be $($Swiss Francs$)$ CHF $380,000.$ The

organisation would have to pay a licensing fee of $($GBP$)30,000$ each year. The

government stipulated controls ensure that a routine inspection is conducted of the

factory every three years, and the cost per inspection would amount to $($GBP$)$

$70,000.$