Finance for International Business: Bonita Foods Investment Report

This report presents a comprehensive financial analysis of a case study involving Wholesome Organic Foods (WOF) considering an investment in Bonita Foods. The analysis utilizes various capital budgeting techniques, including Net Present Value (NPV), Payback Period (PBP), Internal Rate of Return (IRR), and Weighted Average Cost of Capital (WACC), to evaluate the feasibility of the acquisition. The report assesses WOF's current financial position, including liquidity, profitability, and solvency ratios, to determine its capacity for the investment. The core of the report focuses on comparing the financial outcomes under different trade scenarios (best, base, and worst cases) to recommend an acquisition strategy. The analysis considers currency risk and explores alternative financing options for the investment. The report concludes with a recommendation for WOF to acquire Bonita Foods based on the positive financial outcomes derived from the investment analysis.