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A Canadian company has been invited to invest its resources into an African country for the purposes of building and exploiting a project. Although it
A Canadian company has been invited to invest its resources into an African country for the purposes of building and exploiting a project. Although it has completed this type of project in 20 countries around the world, it has never worked in this country. The country is relatively stable compared to others in the area, but the managers are nervous. They are considering declining the invitation, but they have estimated that they can earn an IRR of 40% for the five years of the project, an impressive return. The Company wants to protect itself against some of the risks of being active in this developing market. List and describe 4 risks and the respective mitigation strategies
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