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Part 1: Choose the best location for a new plant (15 points). The Xiao Rong Import Export Company is considering an expansion. The Consumer Products

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Part 1: Choose the best location for a new plant (15 points). The Xiao Rong Import Export Company is considering an expansion. The Consumer Products Division has a new line of toys, and management is looking at plant locations in the United States, the Euro Zone, and India. The table below includes the initial cost, the after tax cash flow, the time period, and the Weighted Average Cost of Capital. Your assignment is as follows: 1. What is the Net Present Value and Internal Rate of Return for each option? 2. Rank the plant options (1st, 2nd, 3rd). Hint: Use the xe.com website to convert all options to U.S. Dollars. 3. Explain your rankings (what is the best location and why?) 3. Explain your rankings (what is the best location and why?)

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