It is the location from where the business is performed primarily.
Explanation:
If a business runs from multiple places or has many factories all over, the primary address is the headquarters or office that manages all these different avenues.
<u>Primary business address is always the center of a particular business. </u>
<u>It must be written like any address but can be seen as different from the registered address of the company.</u>
This is the address used for contact by all clients and other business.
Answer:
The incremental benefit cost ratio is less than 1 therefore we must select site 1.
Explanation:
The incremental BCR can be determined using the following formula
8% , 10)
⇒ 
⇒ 
8%, 20)
⇒ 
⇒
= $203,704.42
Incremental initial investment = 203,704.42 - 149,029.49
= $ 54,674.93
Incremental benefits = 580,000 - 520,000 = 60,000
Incremental O&M = 75,000 - 80,000 = - $ 5000
Incremental Disbenefits = 140,000 - 90,000 =$ 50,000
All solving using the present worth method also incremental benefit cost ratio comes out to be 0.2743.
The incremental benefit cost ratio is less than 1 therefore we must select site 1.
Answer: Company should not expand to either.
Explanation:
Find the expected values of expanding to either country and pick the country with the highest expected value:
China:
= ∑(Probability of outcome * Outcome)
= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)
= -$300,000
Vietnam:
= (70% * 1,000,000) + (30% * -2,500,000)
= -$50,000
<em>Both countries result in an expected loss so company should not expand to either of them. </em>
Answer:
Offshoring
Explanation:
offshoring is the process of moving an aspect of a business process overseas with the intention of reducing cost.
A firm can move its manufacturing process from its own parent country to another country (usually where the labour rate and cost of raw materials is cheap compared to what it obtainable in its home country) in other to reduce its cost of production thereby increasing its added value.
From the above explanation, we can conclude that Prextos is planning to employ Offshoring to cut down losses.
