w3Accounting

Week 3 Assign

Better Kitchen Appliances, Inc.

Better Kitchen Appliances, Inc.is considering expanding its international presence. It sells 25% of all the toaster ovens sold in the United States but only 3% of the toaster ovens sold outside of the United States. The organization believes that it can sell more of its product if it has a production facility located overseas. Estimates concerning two possible locations, Penang, Malaysia and Kuala Lumpur, Malaysia follow:

The Assignment:

· Part 1: Prepare a spreadsheet using Excel or a similar program in which you compute the following for each proposed location.

· Accounting rate of return on investment

· Payback

· Net present value

· Internal rate of return

Part 2: No plagiarism. Please write on five bullet points. Utilizing Word document prepare a written report for the Board of Directors. The intended audience is clear from the salutation and the language used throughout the report.

· Include a detailed and thorough explanation of the conclusion you reached regarding the feasibility of each proposal supported by the calculations prepared in Part 1.

· Explain at least five non-financial items (e.g., culture, language, etc.), which may impact the perceived desirability of each location.

· Select the one location you recommend the Board invest in. Explain your rationale in precise and detailed language.

Thanks.