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must use Excel. please show work/equations used. Dave's Diagnostics is looking to manufacture COVID-19 test kits and the company needs to find a new manufacturing
must use Excel. please show work/equations used.
Dave's Diagnostics is looking to manufacture COVID-19 test kits and the company needs to find a new manufacturing facility. Dave has found empty facilities in three locations that would work for his new plant Each location comes with different costs: the properties all have different purchasing costs, each city has a different cost of living, and the facilities have different capacities (which leads to different revenue amounts). In which city should Dave's Diagnostics do its manufacturing if their MARR is 15%, they plan to manufacture these tests for 7 years, and revenue will decline by 20% each year as COVID become less prevalent? Location Detroit, MI San Francisco, CA Initial Property Cost $ 600,000.00 $ 1,000,000.00 Annual Employee Cost $ 6,500,000.00 $ 8,000,000.00 Starting Annual Revenue $ 10,000,000.00 $ 12,000,000.00 Annual Revenue Decline 20% 20% Number of Years 7 7 MARR 15% 15% Atlanta, GA $ 400,000.00 $ 3,500,000.00 $ 7,500,000.00 20% 7 15% None - all negative NPV Detroit Atlanta San FranciscoStep by Step Solution
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