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Quantum Logistics, Inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the AlabamaGeorgia border. There
Quantum Logistics, Inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the AlabamaGeorgia border. There are three cities being considered. After site visits and a budget analysis, the expected income and costs associated with locating in each of the cities have been determined. The life of the warehouse is expected to be 12 years and MARR is 15%/year.
Quantum Logistics, Inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the Alabama-Georgia border. There are three cities being considered. After site visits and a budget analysis, the expected income and costs associated with locating in each of the cities have been determined. The life of the warehouse is expected to be 12 years and MARR is 15%/year. City Initial Cost Net Annual Income Lagrange $1,260,000 Auburn $1,000,000 Anniston $1,620,000 $480,000 $410,000 $520,000 Click here to access the TVM Factor Table Calculator What is the future worth of each site? Lagrange:$ Auburn: $ Anniston: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 100. What is the decision rule for determining the preferred site based on future worth ranking? Which city should be recommendedStep by Step Solution
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