Optimal corporation want to expand their manufacturing facilities they have two choices,first to expand the current site at cost of 290,000 per year for two years to complete the expansion or to sell their current site for 1.3 million and purchase anew large facility at a cost of 900,000 in the industrial zone ,if the annual interest rate 8% evaluate the cash flow for both options ,describ abova and decide which is the most financially beneficial to the corporation?if optimal corporation wants to factor inflation in their calculations what is the equivalent nominal interest rate if expected inflation rate is 4% in the coming year?critically discuss the significance of including the factor of inflation in corporate finance calculation ?
Optimal corporation want to expand their manufacturing facilities they have two choices,first to expand the current site at cost of 290,000 per year for two years to complete the expansion or to sell their current site for 1.3 million and purchase anew large facility at a cost of 900,000 in the industrial zone ,if the annual interest rate 8% evaluate the cash flow for both options ,describ abova and decide which is the most financially beneficial to the corporation?if optimal corporation wants to factor inflation in their calculations what is the equivalent nominal interest rate if expected inflation rate is 4% in the coming year?critically discuss the significance of including the factor of inflation in
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