International Capital Budgeting Will It Be Worthwhile to Venture? "We better get started on this report," said Hal to his assistant, Roger, as he straightened up in his seat and fired up his laptop computer. "I'm sure Henry will expect a detailed analysis first thing Monday morning." Hal Burton, vice president for International Business Development at Siemens Technologies, and his assistant, Roger Manning, were returning to the United States from their seven-day trip to New Delhi, India. Henry Black, president and chief executive officer of Siemens lechnologies, had been contacted by Saini Electronics from India with a proposal of starting a joint venture for the production of circuit boards. Currently, Siemens Technologies was exporting 50,000 circuit boards a year to Indian importers at a per-unit price of $50 including shipping and insurance. The company had managed to obtain an import agreement rom the Indian government for a 10-year period, which was due to expire within one year. The pre-tax profit on the exported circuit boards was 1 per unit (Table 1 for cost breakdown) and unit sales were expected to increaseat the rate of 3% peryear basedon the projected increase in the $15 gross domestic product in India hat the cost of establishing the manufacturing facility in India woul Based on the discussions held with the Indian counterparts, Hal estimated 000 at the prevailing exchange rate of $1 50 rupees. The ner agreed to invest 50% of the initial outlay. In addition to Indian part 105 International Capital Budgeting Will It Be Worthwhile to Venture? "We better get started on this report," said Hal to his assistant, Roger, as he straightened up in his seat and fired up his laptop computer. "I'm sure Henry will expect a detailed analysis first thing Monday morning." Hal Burton, vice president for International Business Development at Siemens Technologies, and his assistant, Roger Manning, were returning to the United States from their seven-day trip to New Delhi, India. Henry Black, president and chief executive officer of Siemens lechnologies, had been contacted by Saini Electronics from India with a proposal of starting a joint venture for the production of circuit boards. Currently, Siemens Technologies was exporting 50,000 circuit boards a year to Indian importers at a per-unit price of $50 including shipping and insurance. The company had managed to obtain an import agreement rom the Indian government for a 10-year period, which was due to expire within one year. The pre-tax profit on the exported circuit boards was 1 per unit (Table 1 for cost breakdown) and unit sales were expected to increaseat the rate of 3% peryear basedon the projected increase in the $15 gross domestic product in India hat the cost of establishing the manufacturing facility in India woul Based on the discussions held with the Indian counterparts, Hal estimated 000 at the prevailing exchange rate of $1 50 rupees. The ner agreed to invest 50% of the initial outlay. In addition to Indian part 105