You have to decide whether to keep the factory where it is or move it to Canada

You have to decide whether to keep the factory where it is or move it to Canada or Ireland. You can only keep one factory open. The corporate tax rates of Canada (20%) and Ireland (15%) are much lower than the U.S. (35%). Labor costs will not change significantly because the cost of training new employees will be offset by the replacement of highly paid senior employees with younger employees in the other countries. The old factory needs extensive renovation which will still not leave it as efficient as the new factories planned for the new countries. Therefore, the NPV of the capital investments involved are equal for all three countries. You have calculated the NPV of each choice. The NPV of keeping the U.S. factory open is $1,000,000. The NPV of moving the factory to Canada or Ireland is $10,000,000 and $35,000,000 respectively. In this writing assignment, you should answer the following questions: ? Where should your factory be located? Why? ? Who are the stakeholders in this decision? How did you take the stakeholders into account when making your decision? ? How does your decision support responsible stewardship and integrity in the context of financial management?

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