The Xiao Rong Import Export Company is considering an expansion. The Consumer Products Division has a new line of toys, and management is looking at plant locations in the United States, the Euro Zone, and India. The table below includes the initial cost, the after tax cash flow, the time period, and the Weighted Average Cost of Capital. Your assignment is as follows:

1. What is the Net Present Value and Internal Rate of Return for each option?
2. Rank the plant options (1^st, 2^nd, 3^rd). Hint: Use the xe.com website to convert all options to U.S. Dollars.
3. Explain your rankings (what is the best location and why?)

Plant Location	United States	Euro Zone	India
Initial Cost	$500,000	350,000 Euros	95,000,000 Rupees
After Tax Cash Flow	$110,000	75,000 Euros	15,000,000 Rupees
Time Period	10 years	10 years	10 years
WACC	5%	5%	5%
NPV
IRR
Rank