Fin 403 Week 5 Learning Team Assignment Direct Foreign Investment Decision Proposal Paper

FIN 403 Week 5 Learning Team Assignment Direct Foreign Investment Decision Proposal Paper
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FIN 403 Week 5 Learning Team Assignment Direct Foreign Investment Decision Proposal Paper
Prepare a 5,250- to 7,000-word proposal in which you select the optimal financing and investment strategy for your scenario.
Include the following information in your proposal:
Identify which country you chose and why.
Identify foreign exchange rate data.
Use foreign exchange and cost of capital data to determine appropriate capital sources.
Conduct a sensitivity analysis, based on the following questions:
What if funds are blocked? How does this affect the parent organization?
What if the subsidiary provided funds?
How does the source of capital affect the subsidiary and parent organization?
What sources of capital would minimize the cost of capital to the subsidiary?
What happens if the country you chose provides incentives to invest? Now that your organization is profitable, the country is taking incentives back. How do you determine the residual value at the end of the project life?
How is the value of an organization determined from the following perspectives?
Expiration of project life
Friendly or unfriendly buyout
Economic decision to change locations
Nationalization or confiscation of organization
Identify available alternative investment and financing decisions, and make a final recommendation.
Use the capital budgeting technique to justify your conclusions. Support your choice of the discount rate used in the calculation of net present value.
Develop a contingency plan based on your sensitivity analysis. Modify your investment and financing strategy based on the identified changing global risk factors.
Include appropriate spreadsheets displaying a financial analysis in your proposal. If you used an...