Evaluating a Proposal to Invest in a New Plant in Turkey

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Student Name
Student Number
Date of Assignment
Course Id
Course Name

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Introduction
The case details about the following aspects: -
- Make the successful trail into permanent status
- Evaluating a proposal to invest in a new plant dedicated to the manufacture of these components to be located in
Turkey
- Turkey Increased Output by 1.75 Million
- Recruitment Level is good as unemployment rate is high
- Government Investment is good as growth rate is 5.5 percent
- Currency trading at TL8.8257/£. – Trading rate as shown in UK and Turkey
- Cost of the new plant = TL 110 M include 3D MACHINE
- 3D Machine = TL 15 M Depreciation = 10 years SLM, Zero – Residual Value
- Sales 2020 Year 1 = TL 15518 K, Growth rate = 12 % each year
- Variable cost - TL 1467 K - 35 PERCENT LABOUR COST, Labour increase 2% every year, other 1 percent every
year.
- Fixed Cost – TL 1144 increase 1 %
- BETA = 1.60
- Tax Rate = 22 % for collaboration applying lower rate 10 %
- UK Tax Rate = 19 %
- Accounting Profit = Tax Profit
- All sales are exported and converted into the TL value

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- HMS plc ordinary shares are trading on the London Stock Exchange at £3.26 whilst their loan stock is trading at
£101.63. During the last year the firm earned profit after tax of £13,470,000.
Analysis
The project has to be evaluated in the position which assures the factor that whether the same is feasible project in
terms with the financial perspective as well as in terms with the foreign risk management and the same is
highlighted into following section analysis.
 Strategies Available - Enable The Creation And Maintenance Of Value
The best way to ensure that project investment has an appropriate level of creation or maintenance value is that to
assure that the first and foremost the collaboration between the two mindset is clear and crisp all terms are set and
managed in a right direction. On the more, it is very necessary that the planning precision must exists, they include
all the possible outcomes on the planning stages as well as the execution stages. It is necessary to understand that
the maintenance can be lead to perfect creation as well as evaluation when the placement of people and job
description is done in a right manner (Feenstra,2015). The professional are correctly assigned and distributed with
the job responsibility. Adding more, it is evident that the performance measurement is done in a rightful manner, on
the more, it is evident that the collaborative process as well as the counsel is correctly managed. Lastly, but most
importantly it is very necessary that the safety culture which assures that the accountability and the awareness is
made well aware to all parties whether being the external parties as well as internal parties. Thus, these strategies
assure a better creation of the project for the Hatfield Manufacturing Systems plc.