Q1) The previous building investment cash flows for these countries are given in Table 1 C Initial Initial Total 0 Investm Product u nt ry Investmen t (year) ent (Buildi ng) ($/m) (without labor) ) Production Capacity (# of components) 450 465 512 600 460 500 555 465 560 ion Area (m)x10 x1000 00 Country' Employe e Salary 15,000 11,000 27,000 35,000 20,000 37,000 43,00 15,000 22,000 S Inflation Rate(ave. ) 3.4% 3.7% 3.3% 4.5% 3.9% 4.0% 3.1% 4.1% 4.4% ($/m) (Labor Cost) A 1999 13 30 B 2001 10 20 C 2007 16 25 D 2010 28 31 E 2000 12.4 19 F 2005 27 24 G 2009 33 30 H 2002 16.2 22 I 2008 17 21 (Assume that the area need increase lineary with capacity increase) Countr y's Tax Rate over Employ ees' salary 10% 15.3% 17% 8% 12.1% 14% 11% 14.5% 16.4 Countr y's I) Which Country Would you Choose to invest (Building the Factory)? Buildin g Usage Tax ($/m) 6 5 4 7 6.4 4.3 10 4.3 5.7 Please confirm your answer by comparing the building cost of all countries by using NPW analysis II) What is your building cost in actual $ value today. III) If you want the investment pay back in 5 years what should be the ROR. (Assume that the increase in number of production will linearly increase the revenue)

Q1) The previous building investment cash flows for these nountriac ara rivan in Tohla 1 (Assume mat me area neea morease nneary witn capacily increase) I) Which Country Would you Choose to invest (Building the Factory)? Please confirm your answer by comparing the building cost of all countries by using NPW analysis II) What is your building cost in actual $ value today. III) If you want the investment pay back in 5 years what should be the ROR. (Assume that the increase in number of production will linearly increase the revenue)