Evaluate each location based on average rate of return


Garrison Applicances, Inc. is considering expanding its international presence. Two possible locations are considered:

Possible Locations                        Mumbai                     Bangalore

Initial Cash Outlay                        $5,000,000               $2,800,000

Useful Life                                   20 years                 20 years

Net Cash Inflow                            $1,100,000               $860,000

Cost of Capital                              9%                             9%

Tax Rate                                      40%                           40%

Evaluate each location based on Average Rate of Return, Payback Period, Net Present Value, Profitability Index, Internal Rate of Return

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Finance Basics: Evaluate each location based on average rate of return
Reference No:- TGS0729769

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