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Your company is deciding whether to manufacturer its new product in Taiwan. You have estimated that the annual cost of production for the next 6
Your company is deciding whether to manufacturer its new product in Taiwan. You have estimated that the annual cost of production for the next 6 years in Taiwan will be 30 million Taiwan Dollars per year. If the exchange rate is $1 U.S. = 29.7 Taiwan Dollars, and the discount rate is 10%, calculate the present value of the costs of manufacturing in U.S. Dollars if the annuity factor for 6 years at 10% is 4.355.
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