Based on the two above calculations which of the two is the preferred location?

You are starting a company to manufacture solar panels. You are considering two locations one in so Show more You are starting a company to manufacture solar panels. You are considering two locations one in southern California and one in Wyoming. Land and development costs are higher in California but operational costs are lower because access is more convenient. Costs and anticipated income (Benefit) for each of these locations are listed in the following table: California ($M) Wyoming ($M) Development and Land 5 3 Equipment 1.5 1.25 Other Misc. costs 1.8 1.95 Annual operations & maint costs 3.5 4.7 Annual income 4.4 5.4 Future market value 6.3 4.2 The market for solar panels is expected to be strong for the next 15 years. Because the market is fairly stable you are planning for an MARR of 10% A) Calculate the Net Present Worth of the alternative in California B) Calculate the Net Present Worth of the alternative in Wyoming C) Based on the two above calculations which of the two is the preferred location? D) How much higher would the net annual income need to be for the location that is less preferable in the problem above to obtain the same rate of return as the preferred location? Show less

QUICK QUOTE

Approximately 250 words