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Doremus Decorative Doornobs is considering moving its manufacturing facility from Denville, New Jersey to Dover, Delaware. The new facility will begin manufacturing in Year 2.
Doremus Decorative Doornobs is considering moving its manufacturing facility from Denville, New Jersey to Dover, Delaware. The new facility will begin manufacturing in Year 2. Moving the facility will require spending (cash out flow) Year 0 $850 1 $600 Should DDD move to Dover the Denville plant will be closed in Year 2 shut down costs will be $550 layoffs and environmental cleanup For Year 1, door knobs will continue to be manufactured in Denville. Discount Rate 7.50% 0 1 5 9 2 $100 3 $300 4 $500 6 $900 7 $900 8 $900 10 $900 $700 $900 Cash Flows for new Dover facility (excludes all move related spending) $80 $100 $150 $150 $150 $150 $150 $150 $150 $150 Cash flows from Denville (assuming no move to Dover) Should Doremus move from Denville to Dover
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