An automobile manufacturing company in a foriegn Country X is considering the construction and operation of...

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An automobile manufacturing company in a foriegn Country X is considering the construction and operation of a large plant on

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Answer 1

Answer #1

Company's before tax MARR based on Currency of Country X is 20%

Dollar is projected to devaluate 2.2% annually relative to the currency of Country X

.

U.S. MARR for the company for economic analysis = 0.20 + 0.022 + (0.20)*(0.022)

= 0.20 + 0.022 + 0.0044

= 0.2264

= 22.64%.....(Answer)

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Answer 2

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