A company is considering expanding in Asia or LATAM, considering the following initial investments and expected future cash flows:
The discount rate over 4 years is 8%
Initial investment -500 000 -325 000
Year 1 100 000 80 000
Year 2 125 000 85 000
Year 3 150 000 90 000
Year 4 175 000 95 000
Calculate the present value of the sum of future cash flows, the net present value (NPV), Benefit cost ratio (BCR) and the internal rate of return (IRR)
Advise on where it would be more profitable for the company to expand.