Detailed Report: Reasons for Rejecting Axon N.V.'s UK Proposal

This memorandum analyzes the rejection of a proposal by Axon N.V., a multinational chemical manufacturing firm, to construct a new manufacturing facility in the UK. The proposal, which focused on the production of AR-42, was rejected by the board of Netherlands due to several factors. These factors include the economic advantages of purchasing the product from the Netherlands, concerns about potential losses, high investment costs, competition between subsidiaries, lack of sufficient demand in the UK, a lack of experienced staff, the economic benefits of transportation from the Netherlands, and financial analysis issues such as incorrect NPV calculations and depreciation. The report also discusses the company's reputation and shareholder return considerations. The qualitative analysis showed the proposal was not only uneconomical but also would lead to the companies loss and unfavorable market competitions hence it was rejected.