International Finance Report U.K. 2022

Running head: INTERNATIONAL FINANCE
INTERNATIONAL FINANCE
Name of Student
Name of University
Author’s Note

Running head: INTERNATIONAL FINANCE
EXECUTIVE SUMMARY:
This report states the investment plan for Hatfield Manufacturing System plc. To
analyses the project the net present value, internal rate of return and weighted average
cost of capital has been calculated. The report also discusses about the internal and
external factor of Turkey that might affects the business environment of the country. The
report also discusses about the foreign exchange rate of the company.

Running head: INTERNATIONAL FINANCE
Table of Contents
BACKGROUND OF THE COMPANY:...................................................................4
ADVANATGES AND DISADVANTAGES OF PLANT IN TURKEY:.......................4
INVESTMENT PROPOSALS:................................................................................6
Internal Rate of Return:.......................................................................................6
Net Present Value:..............................................................................................7
Weighted Average Cost of Capital:.....................................................................9
IMPACT OF FOREIGN EXCHANGE:..................................................................10
Payment to Supplier:.........................................................................................10
Hedging:............................................................................................................10
CONCLUSION AND RECOMMENDATION:........................................................10
REFRENCING:.....................................................................................................12

Running head: INTERNATIONAL FINANCE
BACKGROUND OF THE COMPANY:
Hatfield Manufacturing systems plc is one of the manufacturing companies that
deal with 3D printer. The main headquarter of the company is in United Kingdom. The
company in recent period also deals with the products that are required in the
aerospace industries and motor vehicle industries. In recent period the company wants
to expand their business and go multinational. To so the company has selected Turkey
as the first company where they want to open a manufacturing firm. To open the
business the company needs a well-developed financial plan. The company needs to
take care of the investment plan also (Bogataj and Bogataj 2019). The decision
regarding the investment in Turkey the company needs to analyses the internal and
external factor of the country that affects the country’s business environment. The
company’s financial plan to establish the manufacturing plant in Turkey needs a detail
explanation. The analyses include net present value, internal rate of return and
weighted average cost of capital. It is expected that this analyses will assists the
management of the compant to gain the profit from the project.
ADVANATGES AND DISADVANTAGES OF PLANT IN TURKEY:
Turkey is one of the most suitable countries for opening a business. Turkey
provides several kinds of facilities that assist the foreign companies to do business
(Browne et al 2016). The policies of the country are termed as very lenient. The
country’s business policies for the multinational companies are very profitable in
comparison to the other countries around the world. The government also supports the
business to expand by providing better communication facilities, transportation facilities
and more importantly a better infrastructure. The country provides one of the best water