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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%
- 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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