Discuss the major risks in project, Financial Econometrics

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Determine whether the proposed investment in Gujistan satisfies the investment criteria set by PASE plc. Also discuss the limitations of the criteria in the context of this project and then advise the company whether or not it should invest in the project.

Show all your workings, and state clearly any assumptions that you may make, but they should be confined within the text of the project scenario.

There are approximately 1 mark for calculating the hurdle rate for the project, 2 marks for limitations and 1 mark for presentations

b) Discuss the major risks which PASE plc will face if it decides to implement the project. Your answer should include a discussion of how the risks can be mitigated or managed by the company.

c) Comment on the sources of capital employed by PASE plc in financing its operations


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