Best Assignment on Finance for International Business

FINANCE FOR INTERNATIONAL BUSINESS
1
FINANCE FOR INTERNATIONAL
BUSINESS
Assignment Title: Hatfield Manufacturing Systems plc

FINANCE FOR INTERNATIONAL BUSINESS
2
Contents
Analysis of the project undertaken:............................................................................................3
Viability of the project:..............................................................................................................5
Effects of the foreign exchange:................................................................................................6
Addition of value to the company:.............................................................................................7
Financing of the project:............................................................................................................7
Other considerations:.................................................................................................................8
References..................................................................................................................................9

FINANCE FOR INTERNATIONAL BUSINESS
3
Analysis of the project undertaken:
The purpose of this assignment is assessment of the project to be undertaken by Hatfield
Manufacturing Systems plc.
The following table shows the relevant calculation:
(Amounts in TLk)
Particulars
202
0
202
1
202
2
202
3
202
4
202
5
202
6
202
7
202
8
202
9
Cash
outflows:
Initial
investment
9500
0
Machinery
1500
0
Total cash
outflows
-
1100
00
Cash
inflows:
Sales
15,
518.
00
17,
380.
16
19,
465.
78
21,
801.
67
24,
417.
87
27,
348.
02
30,
629.
78
34,
305.
35
38,
422.
00
43,
032.
64

FINANCE FOR INTERNATIONAL BUSINESS
4
Less: variable
costs:
Labour costs
513.
45
523.
72
534.
19
544.
88
555.
77
566.
89
578.
23
589.
79
601.
59
613.
62
Other costs
953.
55
967.
85
982.
37
997.
11
1,
012.
06
1,
027.
24
1,
042.
65
1,
058.
29
1,
074.
17
1,
090.
28
Gross profit
14,
051.
00
15,
888.
59
17,
949.
21
20,
259.
69
22,
850.
04
25,
753.
88
29,
008.
90
32,
657.
27
36,
746.
24
41,
328.
74
Less: fixed
costs
1,
144.
00
1,
155.
44
1,
166.
99
1,
178.
66
1,
190.
45
1,
202.
36
1,
214.
38
1,
226.
52
1,
238.
79
1,
251.
18
Less:
depreciation
11,
000.
00
11,
000.
00
11,
000.
00
11,
000.
00
11,
000.
00
11,
000.
00
11,
000.
00
11,
000.
00
11,
000.
00
11,
000.
00
Earnings
before taxes
1,
907.
00
3,
733.
15
5,
782.
22
8,
081.
02
10,
659.
58
13,
551.
53
16,
794.
52
20,
430.
75
24,
507.
45
29,
077.
56
Less: Taxes
@10%
190.
70
373.
31
578.
22
808.
10
1,
065.
96
1,
355.
15
1,
679.
45
2,
043.
07
2,
450.
75
2,
907.
76
Earnings
after taxes
1,
716.
3,
359.
5,
204.
7,
272.
9,
593.
12,
196.
15,
115.
18,
387.
22,
056.
26,
169.