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The Board of Directors of Stellenbosch Ltd would like to assess the country risk of Rwanda. Stellenbosch Ltd has identified various political and financial risk
The Board of Directors of Stellenbosch Ltd would like to assess the country risk of Rwanda. Stellenbosch Ltd has identified various political and financial risk factors, as shown below.
Political Risk Factor
Assigned Rating
Assigned Weight
Blockage of fund transfers
Bureaucracy
Financial Risk Factor
Assigned Rating
Assigned Weight
Interest rate
Inflation
Exchange rate
Competition
Growth
Stellenbosch Ltds Directors have assigned an overall rating of to political risk factors and of to financial risk factors. Stellenbosch Ltd is not willing to consider Rwanda for investment if the country risk rating is above
Required:
With the aid of calculations, advise the Board of Directors of Stellenbosch Ltd on whether they should consider Rwanda as an investment destination?
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