Mining project in brazil

Assignment Help Basic Computer Science
Reference no: EM131979723

A Canadian MNC is considering a mining project in Brazil with the following cash flows:

Year   Cash Flow (BRL million)

0              -150

1                40

2                55

3                70

4                80

The subsidiary- level cost of capital for this project is 18 percent. The subsidiary obtained this rate by conducting a benchmark study of cost of capital for Brazilian firms for similar projects. The firm's CFO notes that this cost is artificially high due to parity violation. In particular, the CFO notes that four- year interest rates in Canadian dollar- (CAD) and BRL- denominated risk- free debt are 3 percent and 8 percent, respectively, and that the company's CAD- denominated WACC is 10 percent. What is the NPV from the subsidiary's perspective?

Reference no: EM131979723

Questions Cloud

Operates at practical? capacity : ?(a) What will the? plant's profit per week be if it operates at practical? capacity?
Retirement account on a yearly basis starting : Anne wants to retire in 15 years and being optimistic she expects to live for a long time after that (assume forever). She estimates that she will need a total
Debt and repurchased the equity : What would be the value of the firm if it issued $50 in debt and repurchased the equity?
Commission amount he will pay investment company : Bob Newsome purchased 250 shares of the New Horizons Growth Fund. The purchase cost for each share at the time of purchase was $30.
Mining project in brazil : A Canadian MNC is considering a mining project in Brazil with the following cash flows:
What is the project mirr : What is the project's MIRR? Please explain your calculations step by step.
Identify a matching firm in firm industry : Compare your firm's long term debt/total assets and Long term debt/Equity ratio with your matching firm.
Calculate the future value of a investment paying interest : Work out the value of the investment after 1, 5, and 20 years. (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Common stock will pay a cash dividend : A common stock will pay a cash dividend of $5 next year. After that, the dividends are expected to increase indefinitely at 1% per year.

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Identifies the cost of computer

identifies the cost of computer components to configure a computer system (including all peripheral devices where needed) for use in one of the following four situations:

  Input devices

Compare how the gestures data is generated and represented for interpretation in each of the following input devices. In your comparison, consider the data formats (radio waves, electrical signal, sound, etc.), device drivers, operating systems suppo..

  Cores on computer systems

Assignment : Cores on Computer Systems:  Differentiate between multiprocessor systems and many-core systems in terms of power efficiency, cost benefit analysis, instructions processing efficiency, and packaging form factors.

  Prepare an annual budget in an excel spreadsheet

Prepare working solutions in Excel that will manage the annual budget

  Write a research paper in relation to a software design

Research paper in relation to a Software Design related topic

  Describe the forest, domain, ou, and trust configuration

Describe the forest, domain, OU, and trust configuration for Bluesky. Include a chart or diagram of the current configuration. Currently Bluesky has a single domain and default OU structure.

  Construct a truth table for the boolean expression

Construct a truth table for the Boolean expressions ABC + A'B'C' ABC + AB'C' + A'B'C' A(BC' + B'C)

  Evaluate the cost of materials

Evaluate the cost of materials

  The marie simulator

Depending on how comfortable you are with using the MARIE simulator after reading

  What is the main advantage of using master pages

What is the main advantage of using master pages. Explain the purpose and advantage of using styles.

  Describe the three fundamental models of distributed systems

Explain the two approaches to packet delivery by the network layer in Distributed Systems. Describe the three fundamental models of Distributed Systems

  Distinguish between caching and buffering

Distinguish between caching and buffering The failure model defines the ways in which failure may occur in order to provide an understanding of the effects of failure. Give one type of failure with a brief description of the failure

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd