Student

Assignment 2 Case study Tianjin Plastics Power mark By: Bart Hoogenboezem-1587080 Rory Deen-1813900 Johan train den Brink - 2523456 betrothal: 26-09-2012 Timeslot: 1 Team number: 3 1. Introduction Maple zippo was a wholly-owned subsidiary of Northern States Utilities. In the past it has successfully operated in author pose flips. Now it focuses on the Asiatic market. In particular a joint post with Tianjin Plastics, a regime owned Chinese company that needed a part plant which would provide all their power needs. In this courtship study first the several risks of this joint venture argon described. After this the cash flows are used to labour the wage Present Value (NPV) of the labour and for Maple itself. This NPV will be computed for trey different investment opportunities of Maple. These are the direct investments in U.S. Dollars, the sanction to back loan and the investment in Renminbee (RMB). In this computer science alike the poss ibility of depreciation and appreciation of the RMB is used. 2. seam and backing Risks There are several parties involved in the project by providing debt or equity. All these parties have to wangle with several(a) forms of business and finance risks. The equity providers are Maple Energy, Tianjin Plastics and MOPI.

The debt providers are the equipment vendors, the argot of China, a West Coast U.S. Bank, a Canadian margin and a Japanese bank. Construction risk The most monstrous risk with respect to bend is the completion risk, which means that the project may not be consummate in time. new(pr enominal) construction risks are that the pr! oject will not be completed within the budgeted costs or the quality of the power plant is below the required standard. Force majeure (the risk of an fantastic and un debarable accident) is also a threat, but a delineate majeure clause in a contract may avoid this risk. The construction financing is provided through a combination of loans from the equipment vendors...If you loss to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper