Wenceslas Refining Company. Privately owned Wenceslas Refining Company is considering investing in the Czech Republic so as to have a refinery source closer to its European customers. The original investment in Czech korunas would amount to K250 million, or

$7,692,309 at the current spot rate of K32.50/$, all in fixed assets, which will be depreciated over 10 years by the straight-line method. An additional K100,000,000 will be needed for working capital.

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Wenceslas Refining Company Project Viewpoint (in US$) Original investment (Czeckh korunas, K) 2,500,000,000 Spot exchange change (K/$) 32.50 Unit demand Unit sales price Fixed cash operating expenses Depreciation Investment in working capital (K) 100,000,000 1 2 3 30.00 700,000 $ 10.00 $1,000,000 $ 7,692,309 27.50 900,000 $10.30 $1,030,000 $ 7,692,309 25.00 1,000,000 $10.60 $ 1,060,000 $ 7,692,309