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You are hired to help Amazon with their global strategy formulation, which they need to complete in the next 5 years with at least 6%

  1. You are hired to help Amazon with their global strategy formulation, which they need to complete in the next 5 years with at least 6% return. Given the capital investments summaries below, what project should Amazon undertake and why? What are some of the limitations of the analysis you should consider in your answer?

Payback

Period

Return on Investment (ROI)

Net Present Value

(NPV)

Internal Rate

of Return

(IRR)

P1: expand operations in Germany

4.5 years

0.03

0.01

0.085

P2: establish operations in Lithuania

18 months

0.10

1.7

0.05

P3: conduct a merger with a Taiwanese distributor

7 years

0.059

-2.1

0.045

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