You have been approached by Company Electronic Mfg Corp. (EMC), an electronics manufacturer. Time has passed since your Mid-Term examination and they want to come back and request financing support. Youre working for EDC, an Export Credit Agency, and youve been asked to analyze their statements and determine whether youll provide support. Please explain the reasoning for your decision. Refer to Appendix A for financial details. (15 points)

Opportunity: EMC has won a sales contract with a French distributor in France. They expect to have $20M in sales annually from this distributor, but will be required to set-up a warehouse in France and hold inventory there. The warehouse will cost $2M per year, and they must hold $3M in inventory in order to service French clients. They want a $15M term loan over 3-years to support the expansion. (write on back of paper)