It is required to apply your knowledge of capital investment evaluation techniques and provide your solutions to the given scenarios.

Mondelez International has already four subsidiaries (office and plant) in Southeast Asia which includes Vietnam, Indonesia, Thailand, and the Philippines. The company is currently considering investing in a new plant. The company considers two locations in Southeast Asia: (1) Cambodia and (2) Myanmar. According to the report for both projects, the board of Directors is deciding which location they should invest in, so you should provide a thorough report for both locations. The project is mutually exclusive.

Exhibit 1. Related Financial Data

Data	Product A	Product B
Expected volume (kg) to sell in year 1	1,812,000	1,416,000
Expected selling price per kg (in $) in year 1	4.60	5.50
Current depreciation of the investment $/kg applicable for year 1 to year 5	0.25	0.20
Cost of goods sold $/kg excluding depreciation and delivery cost	2.25	2.58
Annual delivery cost	0.25% Gross Revenue
Annual overhead cost % of net revenue	10%	10%
Annual advertisement cost % of net revenue	10%	10%

• The company will need an initial working capital of USD 10 million and is considering borrowing the funds required for the working capital. You have to analyze different alternatives and suggest the best market to borrow. Should the company borrow from the selected market or international market?
• The project start date is January 1, 2023
• Price and demand information is given in Exhibit 1. The company also considers how to raise prices based on the inflation in the selected market.
• The company also expects to achieve growth in demand for the products in the selected market. You need to research and propose an appropriate inflation rate and growth rate for the company that can be achieved in the selected market during the period of the project. You should justify all your calculations and mention your assumptions.
• All costs (fixed and variable) are paid in USD, and the interest costs will be determined depending on which country you would borrow from.
• The tax depends on the selected country.

The first plant is located in Cambodia. The initial investment in the project is $50,000,000 and the project is expected to have a lifetime of 20 years. The expected revenue and cost are expected to grow according to your research.

The second plant is located in Myanmar. The initial cost of this project is estimated at $35,000,000. This project is expected to last for 20 years The expected revenue and cost are expected to grow according to your research.

You need to determine the appropriate discount rate and justify your assumptions.

Requirements:

1. Use the appropriate method(s) to evaluate both projects and select your preferred project
2. Discuss qualitative factors (non-financial factors) for both projects and explain to your client how this project will help the company to grow sustainably. Provide supporting data in the form of citations to academic research, graphs, and illustrations.

It is required to submit a report in a word file and an excel file (calculation part).