Folio 5: Capital Investment & structure: Based on the country profile from folio 2, you are now exploring the possibilities of establishing your business in the foreign location through Foreign Direct Investment- Decide how much to invest.

Determine capital investment in foreign currency, the capital structure and cost of capital.

If you are using debt, decide to borrow either from home country or target country based on the projected interest rates(from folio 4) in both countries. If you are using own funds use average cost of equity in the home country as the required rate of return/discount rate. If there is a mix of debt and equity; find the weighted average cost of capital.

You must justify your capital investment, Capital structure and cost of capital

Company name = ORIGINAL JUICES( Canadian based company)

country going to export to Australia.

Original Juice Ltd is a juice production firm established in Canada that makes all fruit juices in a healthy manner. Our top objective is to provide real juice to our consumers without the use of sugar or preservatives, as well as to encourage people to live a healthy lifestyle. Our business is now looking to expand internationally and encourage healthy living in other countries. The company was founded in 2015 and has received a positive reception. It made a net profit of 131000$, 214000$, and 216060$ over the last three years. The general labour force has also grown; initially, there were just 100 workers, but today there are about 500. The firm's current capital is $500,000