You are asked to conduct a hypothetical capital budgeting analysis (for a specific company) assuming you are considering a project in a foreign location/country of your choice. This is meant to be a consolidation of your work during the course. Your analysis must include:

1. Country analysis. See this link for more details
2. Exchange rate forecast using parity conditions.
3. Cost of Capital to be used.
4. Potential currency risk management hedging approaches.

Tips:

1. Select a country/currency that, in your view, offers the greatest amount of interest and information.
2. Choose a publicly traded company. Make sure you select a company for which you have public information and similar firms that are also publicly traded.

3. Briefly describe the companys activities and history and include any major event that took place in the last 3 years (major investments, mergers, spin-offs, new line of activity, stock issue, etc.).

4. Determine your companys current Weighted Average Cost of Capital (WACC).

5. Estimate the Country Risk Premium you would apply to an investment opportunity located in the country you chose to invest in.
6. Assume a time series of EBIT for a hypothetical investment opportunity being considered by the company of your choice. The exact numbers used in the analysis & the outcome of the NPV analysis are not important.
7. Your job is to address the four requirements analysis listed above.