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How to increase the profitability

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Your company, EconCo, has just been hired by a foreign company that is trying to open a new manufacturing plant in the United States. Because of the overload in work by the staff, the president of your company, Mr. Wilson, has asked you to prepare a report for the client advising it on how to increase their profitability by moving the company to the United States.

On average, your client receives 1% in annual simple interest in the foreign country. Mr. Wilson announces to you that this is your last assignment as lead consultant before becoming the new vice president of economic information. For this assignment, you must submit a report to the client consisting of 1250-1500 words in which you discuss how to increase the rate it receives on savings by moving the company to the United States. For full credit, you must address the following in your report:

•Define annual simple interest rate.

•Discuss the annual simple interest rate in the United States.

•Explain to the client how the move would benefit savings.

•Research the current interest rate on savings accounts and certificates of deposit in the United States

.•Explain the options available to increase the client’s rates. Be sure to consider fees in your analysis

.•Give an example of how much extra money the client would make (in interest) if it made $450,000,000 a year in sales in the United States. (Figure that the overall costs to the company is $20,000,000, so it makes a net total of $430,000,000 a year.)

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