When scholars have the English-language PDF of this succinct Case in a coursepack, they will likewise have the alternative to buy an audio version. Groupe Ariel examines a proposition from its Mexican subsidiary to buy and set up cost-saving devices at a production center in Monterrey. The enhancements will enable the plant to automate recycling and remanufacturing of toner and printer cartridges, a vital part of Ariel's company in lots of markets. Ariel business policy needs an affordable capital (DCF) analysis and a price quote for the net present value (NPV) for capital investment in foreign markets.
A significant difficulty for the analysis is choosing which currency to utilize, the Euro or the peso. The case presents strategies of affordable capital valuation analysis in a multi-currency setting and can be utilized to teach fundamental worldwide parity conditions connected to the value of running capital. Topics Include: Project Evaluation, Cross-Border, Capital Budgeting, Net Present Value, Foreign Exchange, Securities Analysis, Parity Condition, DCF Valuation, and Exchange Rate.
PUBLICATION DATE: April 19, 2010 PRODUCT #: 411S20-HCB-SPA
This is just an excerpt. This case is about FINANCE & ACCOUNTING