Production needs 9 processes done in 9 different machines. Capacity and price of these machines changes. Each Machine needs an operator therefore as the numbers of machine increases the number of employers increases as well resulting more cost. (Assume that price of the machines are equal for all processes, and based on sellinig price in the country they are being used.) C Initial 0 u t nt (year) ry Investmen A 1999 B 2001 C 2007 D 2010 E 2000 F 2005 Initial Total Actual Investm Product ion ent (Machi Capacit components) nes) y x1000 x1000 ($)x10 4.5 4.6 5.1 6 Production (# of 3.6 5 5.2 4.4 5.6 Country Employe Countr e Salary y's Tax Inflation (S)/hr S Rate over Rate(ave. ne ) Employ operato ees' rs salary 15,000 15,000 15,000 11,000 30,000 27,000 35,000 35,000 20,000 20,000 19 40,000 37,000 24 G 2009 45,00 43,00 30 11 H 2002 20,000 15,000 22 14.5% 16 I 2008 25,000 22,000 21 16.4 10 (Assume that labor cost calculated over 7.5 hr/day, 220 days in one year) I) Which Country Would you Choose to invest (Buy machines to the Factory)? Please confirm your answer by comparing the building cost of all countries by using NPW analysis 3.4% 3.7% 3.3% 4.5% 3.9% 4.0% 3.1% 4.1% 30 20 4.4% 25 31 10% 9 9 Numbe r of machie 15.3% 17% 8% 12.1% 14% 11% II) What is your machine cost in actual $ value today. III) If you want the investment pay back in 3 years what should be the ROR. (Assume that the increase in number of production will linearly increase the revenue) 11 13 12 14