need help with hurdle rate between these two compaines do not need wacc. please show how got work

Panel A: Expond Current Facility (Scenario A) Asset Class 2013 2014 2015 2016 2017 2018 Total Land $0.00 Buildings $30.00 $21.00 $9.00 $60.00 Machinery, Equipment, and Vehicles $33.00 $33.00 $17.50 $16.50 $100.00 Office Furniture and Equipment $1.50 $0.50 $2.00 Communication and Associated Equipment $0.50 $0.50 Personal Computers (Desktop/Laptop) and (effective January 2002) S $0.60 $3.60 $0.80 $5.00 rs Supplier Durable Tooling and Patterns (Considered part of machinery and equipment) $1.00 $1.00 Other $0.00 Total Capital Expenditures $64.60 $59.60 $27.80 $16.50 $0.00 $0.00 $168.50 Total Startup Expenses (see Note) $9.69 $8.94 $4.17 $2.48 $0.00 $0.00 $25.28 Total Investment (SM) USD $74.29 $68.54 $31.97 $18.98 $0.00 $0.00 $193.78 Panel B: Build New Facility in China (Scenario B) Asset Class 2013 2014 2015 2016 2017 2018 Total Land $23.00 $23.00 Buildings $28.00 $14.00 $7.00 $49.00 Machinery, Equipment, and Vehicles $33.00 $33.00 $17.50 $24.50 $108.00 Office Furniture and Equipment $1.50 $0.50 $2.00 Communication and Associated Equipment $0.50 $0.50 Personal Computers (Desktop/Laptop) and (effective January 2002) Servers $0.60 $3.60 $0.80 $5.00 Supplier Durable Tooling an Patteas (Considered part of machivnd equipment) $1.00 $2.00 $3.00 $6.00 Other $5.00 $5.00 Total Capital Expenditures $90.60 $54.60 $28.80 $24.50 $0.00 $0.00 $198.50 Total Startup Expenses $13.59 $8.19 $4.32 $3.68 $0.00 $0.00 $29.78 Total Investment ($M) USD $104.19 $62.79 $33.12 $28.18 $0.00 $0.00 $228.28 Panel A: Freight and Duty Estimates Produced in Aurora Produced in China Geographic Markets (Col 1) Freight (Col 2) $2,000 Duties Total Freight (Col 5) $8,000 Duties Total (Col 3) (Col 4) $2,000 (Col 6) (Col 7) $8,000 North America $0 $4,000 $0 $2,000 $0 South America $6,000 $7,000 $8,000 $10,000 $8,000 $6,000 $3,000 $7,000 $0 $0 $15,000 EAME $7,000 $6,000 Asia/Pacific $10,000 $3,000 Panel B: Example calculation of Per Unit Weighted Average Freight and Duty Cost Total Freight & Duty (Col 3) $2,000 Sales (Col 4 Geographic Markets (Col 1) Volume (Col 2) Col 2 x Col 3) North America 1,800 $3,600,000 1,200 $10,000 $10,000 $7,000 $12,000,000 $4,200,000 South America EAME 600 $9,000,000 $28,800,000 Asia 900 Total 4,500 4,500 Weighted $6,400 Panel A: Geographic operations as a % of total Caterpillar operations 2011 North Latin Sales& Revenues (in millions): Conruction industries Asia/ Pacific America America EAME Total $5,985 $3,045 $4,768 $5,869 $19,667 hesource industries 4,963 2,831 3,228 4,607 15,629 Power systems 8,331 2,363 5,752 3,668 20,114 Other segments and eliminations Machinery &Power System Sales 938 102 581 361 1,982 20,217 8,341 14,329 14,505 57,392 Financial products 1,687 361 438 517 3,003 Corporate items and eliminations -171 -29 -28 -29 -257 Financial Products Revenues 1,516 332 410 488 2,746 Total $21,733 $8,673 $14,739 $14,993 $60,138 % of Total Sales 36.14% 14.42% 24.51% 24.93% 100.00% 19,111 22,330 28,778 125,099 Employe@s CAT Dealers 54,880 55 31 56 49 191 Panel B: 3-Year Compound Annual Growth Rates (CAGRS) from 2008-11 North America Asia/ Pacific Latin Sales&Revenues (in millions) America EAME Total Construction industries 1.00% 9.72% -4.42% 22.56% 5.47% Resource industries 8.50% 22.82% 5.25% 30.54% 15.08% Power systems Machinery &Power System Sales 4.05% 8.93% -3.58% 7.07% 2.59% 3.54% 13.66% -2.65% 18.95% 6.11% Financial Products Revenues -8.84% 0.40% -11.43% 10.57% -5.75% Total 2.44% 13.02% -2.94% 18.63% 5.42% Employees 0.36% 9.89% 9.05% 2.17% 3.48% CAT Dealers -1.18 % 1.05% 11.87% -1.32 % 2.00% Panel A: Expond Current Facility (Scenario A) Asset Class 2013 2014 2015 2016 2017 2018 Total Land $0.00 Buildings $30.00 $21.00 $9.00 $60.00 Machinery, Equipment, and Vehicles $33.00 $33.00 $17.50 $16.50 $100.00 Office Furniture and Equipment $1.50 $0.50 $2.00 Communication and Associated Equipment $0.50 $0.50 Personal Computers (Desktop/Laptop) and (effective January 2002) S $0.60 $3.60 $0.80 $5.00 rs Supplier Durable Tooling and Patterns (Considered part of machinery and equipment) $1.00 $1.00 Other $0.00 Total Capital Expenditures $64.60 $59.60 $27.80 $16.50 $0.00 $0.00 $168.50 Total Startup Expenses (see Note) $9.69 $8.94 $4.17 $2.48 $0.00 $0.00 $25.28 Total Investment (SM) USD $74.29 $68.54 $31.97 $18.98 $0.00 $0.00 $193.78 Panel B: Build New Facility in China (Scenario B) Asset Class 2013 2014 2015 2016 2017 2018 Total Land $23.00 $23.00 Buildings $28.00 $14.00 $7.00 $49.00 Machinery, Equipment, and Vehicles $33.00 $33.00 $17.50 $24.50 $108.00 Office Furniture and Equipment $1.50 $0.50 $2.00 Communication and Associated Equipment $0.50 $0.50 Personal Computers (Desktop/Laptop) and (effective January 2002) Servers $0.60 $3.60 $0.80 $5.00 Supplier Durable Tooling an Patteas (Considered part of machivnd equipment) $1.00 $2.00 $3.00 $6.00 Other $5.00 $5.00 Total Capital Expenditures $90.60 $54.60 $28.80 $24.50 $0.00 $0.00 $198.50 Total Startup Expenses $13.59 $8.19 $4.32 $3.68 $0.00 $0.00 $29.78 Total Investment ($M) USD $104.19 $62.79 $33.12 $28.18 $0.00 $0.00 $228.28 Panel A: Freight and Duty Estimates Produced in Aurora Produced in China Geographic Markets (Col 1) Freight (Col 2) $2,000 Duties Total Freight (Col 5) $8,000 Duties Total (Col 3) (Col 4) $2,000 (Col 6) (Col 7) $8,000 North America $0 $4,000 $0 $2,000 $0 South America $6,000 $7,000 $8,000 $10,000 $8,000 $6,000 $3,000 $7,000 $0 $0 $15,000 EAME $7,000 $6,000 Asia/Pacific $10,000 $3,000 Panel B: Example calculation of Per Unit Weighted Average Freight and Duty Cost Total Freight & Duty (Col 3) $2,000 Sales (Col 4 Geographic Markets (Col 1) Volume (Col 2) Col 2 x Col 3) North America 1,800 $3,600,000 1,200 $10,000 $10,000 $7,000 $12,000,000 $4,200,000 South America EAME 600 $9,000,000 $28,800,000 Asia 900 Total 4,500 4,500 Weighted $6,400 Panel A: Geographic operations as a % of total Caterpillar operations 2011 North Latin Sales& Revenues (in millions): Conruction industries Asia/ Pacific America America EAME Total $5,985 $3,045 $4,768 $5,869 $19,667 hesource industries 4,963 2,831 3,228 4,607 15,629 Power systems 8,331 2,363 5,752 3,668 20,114 Other segments and eliminations Machinery &Power System Sales 938 102 581 361 1,982 20,217 8,341 14,329 14,505 57,392 Financial products 1,687 361 438 517 3,003 Corporate items and eliminations -171 -29 -28 -29 -257 Financial Products Revenues 1,516 332 410 488 2,746 Total $21,733 $8,673 $14,739 $14,993 $60,138 % of Total Sales 36.14% 14.42% 24.51% 24.93% 100.00% 19,111 22,330 28,778 125,099 Employe@s CAT Dealers 54,880 55 31 56 49 191 Panel B: 3-Year Compound Annual Growth Rates (CAGRS) from 2008-11 North America Asia/ Pacific Latin Sales&Revenues (in millions) America EAME Total Construction industries 1.00% 9.72% -4.42% 22.56% 5.47% Resource industries 8.50% 22.82% 5.25% 30.54% 15.08% Power systems Machinery &Power System Sales 4.05% 8.93% -3.58% 7.07% 2.59% 3.54% 13.66% -2.65% 18.95% 6.11% Financial Products Revenues -8.84% 0.40% -11.43% 10.57% -5.75% Total 2.44% 13.02% -2.94% 18.63% 5.42% Employees 0.36% 9.89% 9.05% 2.17% 3.48% CAT Dealers -1.18 % 1.05% 11.87% -1.32 % 2.00%