Reference no: EM132214656

3 page max, double-space 12 point, not including exhibits and figures (include at least 10 exhibits and figures from excel spreadsheet).Label charts (ex. Table 1, table 2), give short description of each graphic of chart.

Executive Summary-¼ of a page.

1. Do we want the machine in Mexico or not?

2. Not just because the NPV is positive, but what's the source of the positive NPV.
a. In first 2 sentences give recommendation.Where does the value come from?
Continued Paper - Each answer should be 1 - 2 sentences, not including exhibit or table for example. All answers put together should not exceed 2.5 pages.

3. How does the exchange rate affect the project?

4. How much is the machine worth?

5. Why hasn't someone done it already?

6. How much do I have to save on labor before it becomes a positive NPV?

7. Which inputs on the excel spreadsheet is the answer sensitive? (Ex. The most important thing is material cost savings)

8. What's the problem with exchange rates?

9. If the project was in-country, and had nothing to do with exchange rates, what would the answer be?

10. What changes if we buy the new machine?

11. How quickly would the peso need to depreciate for the NPV to go to 0?

12. What are the primary sensitivities - change one piece of data at a time, show examples in excel.

13. How quickly will the peso depreciate before the project is a bad thing? What's the break-even?

14. Calculate NPV in euros?

15. What if materials saving cost is different, even 0%?

16. What happens if you change the spreadsheet to look bad?

17. How to make the NPV negative to make the worst case scenario happen, what's worst case scenario?

18. Under what circumstances is this project bad?

19. If the project was in-country, and had nothing to do with exchange rates, what would the answer be?

Attachment:- Cross-Border Valuation.rar