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The COVID-19 pandemic and resulting economic upheaval has clearly exposed the vulnerability of global supply chains and highlights the dangers of relying on the manufacturing

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"The COVID-19 pandemic and resulting economic upheaval has clearly exposed the vulnerability of global supply chains and highlights the dangers of relying on the manufacturing facilities of a single country, China." Faced with this new reality, companies are looking at establishing subsidiaries in other countries to reduce their reliance on China. You have been tasked to do a multinational capital budgeting analysis by a Fortune 500 company. I Required a) State the Fortune 500 company which has hired you. (1 mark) b) Which country will the subsidiary be located? (1 mark) c) Identify the items to be included in the capital budgeting analysis. (3 marks) d) Ascribe values to the items identified part c). These values should capture the effects of inflation on the variable cost per unit and the prices of product. Assume that the project will end in five years and the exchange rate is expected to depreciate 3 % each year for the next 3 years, appreciate by 2% in year 4 and 4% in year in year 5. (8 marks) e) Create an electronic spreadsheet such as excel with the appropriate formulas for your capital budgeting analysis and find the net present value (NPV) of the project in excel. (10 marks) f) Would you recommend that the project be accepted. Justify your answer? (2 marks) g) Conduct a sensitivity analysis by changing the point estimates of three input variables to determine the new estimates of the NPV. How would your accept/reject decision change

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