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Finance Assignment - Philip Morris International

   

Added on  2020-10-22

9 Pages2559 Words470 Views
Finance
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FINANCE
Finance Assignment - Philip Morris International_1

Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY ..................................................................................................................................3Rational for the project ...............................................................................................................3Project effects and benefits ........................................................................................................4Project financials .......................................................................................................................4Project risks.................................................................................................................................5Alternative scenarios...................................................................................................................5Recommendation.........................................................................................................................5CONCLUSION ...............................................................................................................................8REFERENCES................................................................................................................................9
Finance Assignment - Philip Morris International_2

INTRODUCTIONFinance is related to choosing the sources of funds for investing in the project. It assistsin making decision regarding using the sources of funds such as equity of debt for the investmentpurpose. In this assignment, Philip Morris International is involved in cigarette and tobaccomanufacturing. The company is going into a shift from tobacco to the electrical cigarettemanufacturing in order to manufacture the environmentally friendly products which will assist inreducing the harm o the environment as well the customers will be protected. In this assignmentit will include the current situation of the company. Moreover, it will provide understandingabout the project effect and benefit with regards to financial and non – financial. Also, It willprovide the details of the investment valuation methods. It will assist in identifying the riskassociated with the investment or the project. This assignment will also provide the alternativescenario regarding the investment if the firm does not invest in this project.MAIN BODY Aim: To identify the value of the project for sustainable growth . A study on Philip MorrisInternationalObjectiveTo outline the value of the project on the basis of all equity financing To identify the value of the project with 50% of debt financing of initial investment.To identify the investment valuation method for the project.To provide recommendation regarding the project investment to the company.Rational for the project The current situation of the company is that it is undergoing a shift from tobacco basedproduct to the electrical cigarettes as there has been increase in the environmental friendlyproduct and the customers are more attracted to those products and thus the company wasn’t toinvest in this project. The company has decided to evaluate the proposal to acquire Teracycle inorder to use the recycled plastic for the production of electrical cigarettes (Brooks, 2019). Withthe help of this the company will be able to reduce the material cost in the future and it also aimsto become the suppliers of its competitors. This project will helps in increasing the market shareof the company and it will provide safety to the health of the consumers.
Finance Assignment - Philip Morris International_3

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