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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 Alabama-Georgia border. There
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 ofthe cities has been determined The life of the warehouse is expected to be 12 years. and MARR is 15%lyear. City Initial Cost Nemmua' Income Lagrange $920,000 $120,000 Auburn $350,000 $310000 Anniston $1,610,000 $225,000 a. What is the annual worth of each site? Lagrange is $ Auburn is $ Anniston is $ Round answers to the nearest dollar; tolerance is 122.00 b. What is the decision rule for determining the preferred site based on annual worth ranking? V c. Which city should be recommended? V
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