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Prepare your own investment project if assuming that you already have a multinational company, and now you want to broaden your business to one more

Prepare your own investment project if assuming that you already have a multinational company, and now you want to broaden your business to one more country. Meaning that you want to establish a new subsidiary and you need to prepare the capital structure for this project and then evaluate the feasibility of this project. Some basic requirements you need to cover in the project are as follows:

- Capital structure should include both domestic sources and host country's sources. Apply the term of exchange rate to calculate the total initial investment in home country's currency.

- Calculate appropriate minimum required rate of return for the project.

- Estimate the future cash flows of the project and convert into appropriate currency to evaluate the project by using some techniques such as NPV, IRR, payback period, and discounted payback period.

- Prepare some different scenarios of exchange rate that affect the cash flows and reevaluate the project.

- Apply the technique of forward or furure contract to hedge the project.

- Reevaluate the project if we change the financing structure.

- Evaluate the project if all cash flows are blocked in the host country until you sell the subsidiary.

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