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Problem 1 (18 points) A firm is considering moving its manufacturing plant from New York to a new location. The Industrial Engineering department was asked

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Problem 1 (18 points) A firm is considering moving its manufacturing plant from New York to a new location. The Industrial Engineering department was asked to identify various alternatives together with costs and revenues to relocate the plant. They examined three likely sites. Their findings are summarized below: Location Ft. Worth L.A. Charlotte Initial Cost $100,000 $60,000 $40,000 Annual Revenues $74,000 $15,000 $8,000 The annual revenues are expected to be constant over the 12-year analysis period. If the firm uses a MARR of 10%, where should the manufacturing plant be located? Rate of Return Analysis must be used to solve this

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