Paragraph 1.

the nature of the decision ( amount of investment whether it is an expansion , purchase of

capital asset etc , objective of the decision) ,

Paragraph 2.Factors ( both quantitative and qualitative) considered in the decision.

Paragraph 3. capital budgeting technique used if stated.

TOYOTA MOTORS

Toyota made an announcement that the company would invest $13 billion in the United States to
upgrade their current plants under operation and to build fuel-efficient models from 2019 until 2021.
This means that they investment is to improve the 10 plants that are currently operating in eight states.
This long-term project is expected to be fully operational by the end of 2021. Aside from that, Toyota
also made a joint investment

Additionally, Toyota announced in 2019 a partnership with Mazda with a joint investment of $1.6 billion
to build a plant in Huntsville, Alabama. The Huntsville plant will be Toyota's 11th in North America,
producing 300,000 units annually, and is expected to be fully operational by the end of 2021.

In January 2020, Toyota announced that production of the Tacoma -- a historically popular mid-sized
pickup for Toyota -- will be moving to Mexico from the plant in Texas. This announcement was directly
after President Trump signed the United States-Mexico-Canada Agreement, which increases the
percentage of automakers selling automobiles within the United States to acquire parts to assemble the
vehicles from 62.5% from NAFTA to 75%. Toyota's decision to move Tacoma production to Mexico is a
profitability decision in the long-term, as Toyota projects domestic production to fall 5.3% in 2020. As
the operating margin is flat year over year at 8.7% per the recent quarter, an increased focus on
profitability will be a high priority for Toyota as sales projections are expected to fall and economic
uncertainty to continue in the near term.