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NPP Saudi Ltd. has the opportunity to invest $100 million in a new 10 years project in Canada. NPP project will use local materials to

NPP Saudi Ltd. has the opportunity to invest $100 million in a new 10 years project in Canada. NPP project will use local materials to produce a product for export, under long term contracts, 75% to European Union and United States. If it decides to go ahead with the project, NPP will finance the project entirely with debt. NPP credit rating is A+. Trust Bank offered NPP a variety of financing Options. NPP can take the loan in any currency, duration, and terms. Faced with these options, the CEO asked you what the best structure for this loan answer the below questions :

Q1.1 the loan amount is ________

Q.1.2 the loan term is _____ years

Q.1.3 fix or variable we must regress cash flow against _________

Q1.4 to for the loan currency we must regress cash flow against ______

Q Ltd., .. $50 million in perpetuity and result in a saving of 100 million after acquisition. The WACC is estimated to be 10%0

2.1 what is the value of the target to Q ltd.

2.2 how much should Q pay for the acquisition .

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