...Introduction Groupe Ariel SA of France is considering a project in Mexico. They need to analyze the net present value of the project, keeping in mind the exchange rates between Mexican Pesos and Euros in order to maximize their return. They also need to keep in mind the inflation rates over time and the risks involved with this type of investment. Analysis Number 1. Groupe Ariel is recycling old equipment in Mexico. They will need to use pesos to calculate their cash flows to see how this part of their project will impact their finances. They also need to convert this peso amount into Euros. We began the analysis by computing the Net Present Value (NPV) of Ariel-Mexico’s recycling equipment. This was done by first taking the incremental peso cash flow rate by subtracting the cost of the old manual equipment, from the cost of the new equipment. As is displayed in [exhibit XX] the incremental cash flow is represented as positive numbers because the reduced cost is equal to cash flow. Next the depreciation costs were subtracted from the incremental cost totals. The first three years of depreciation included depreciation from the new equipment and the remaining scheduled depreciation of the old equipment. After tax of 35% was deducted from the cash flow the depreciation was added back to represent the tax shield. The NPV was calculated using the NPV function on Microsoft Excel. The discount rate that was used for the Peso NPV was calculated using the equation for the International...
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...Groupe Ariel SA: Parity Conditions and Cross-Border Valuation Hints to case study questions: 1. Compute the NPV of Ariel-Mexico's recycling equipment in pesos by discounting incremental peso cash flows at a peso discount rate. How this NPV should be translated into Euros? Assume expected future inflation for France is 3% per year. 1.1. Review principles of estimating project cash flows. Suggested reading: Ch. 9 “Capital Budgeting and Cash Flow Analysis” in “Contemporary Financial Management”, 11th ed. by Moyer, McGuigan, and Kretlow. a. Project Net Investment (NINV): NINV=Capital Expenditure-ATSVold , where ATSVold = After-Tax Salvage Value of the old equipment. ATSVold=MVold+BVold-MVoldt , where MVold = Market Value of the old equipment;BVold = Book Value of the old equipment; t = tax rate; BVold-MVoldt = tax gains. b. Project Net Cash Flows (NCF): NCF=∆R-∆O-∆D1-t+∆D-∆NWC, where R = Revenues; O = Operating Costs; D = Depreciation, NWC = Net Working Capital; t = the tax rate. In Case 1, R = 0; NWC = 0. Therefore, NCF=-∆O-∆D1-t+∆D, or NCF=-∆O1-t+t∆D, where t∆D is the depreciation tax shield. c. Specifics of Case 1: i. -∆O = Incremental Cost Savings; -∆O1-t= Incremental Cost Savings after tax ii. ∆D=DNew-DOld, where DNew = Depreciation of the new equipment; DOld = Depreciation of the old equipment. Thus, the depreciation tax shield includes two components: t∆D=tDNew-tDOld, where tDNew...
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...ISI, IBSS & SA DHET - FOR 2012 SUBMISSION TITLE LIST COUNTRY ISSN E-ISSN PUBLISHER'S DETAILS Subject classifaction International Accreditation - SA JOURNALS 4Or-A Quarterly Journal Of Operations Research ISI SCIENCE A + U-Architecture And Urbanism ISI ARTS & HUMANITIES A Contrario IBSS Aaa-Arbeiten Aus Anglistik Und Amerikanistik ISI ARTS & HUMANITIES Aaohn Journal ISI SCIENCE Aaohn Journal ISI SOC SCIENCE Aapg Bulletin ISI SCIENCE Aaps Journal ISI SCIENCE Aaps Pharmscitech ISI SCIENCE Aatcc Review ISI SCIENCE Abacus: Journal Of Accounting, Finance And Business Studies IBSS Abacus-A Journal Of Accounting Finance And Business StudiesISI SOC SCIENCE Abdominal Imaging ISI SCIENCE Abhandlungen Aus Dem Mathematischen Seminar Der UniversISI SCIENCE Abstract And Applied Analysis ISI SCIENCE Abstracts Of Papers Of The American Chemical Society ISI SCIENCE Academia-Revista Latinoamericana De Administracion ISI SOC SCIENCE Academic Emergency Medicine ISI SCIENCE Academic Medicine ISI SCIENCE Academic Pediatrics ISI SCIENCE Academic Psychiatry ISI SOC SCIENCE Academic Radiology ISI SCIENCE Academy Of Management Annals ISI SOC SCIENCE Academy Of Management Journal ISI SOC SCIENCE Academy Of Management Journal IBSS Academy Of Management Learning & Education ISI SOC SCIENCE Academy Of Management Perspectives ISI SOC SCIENCE Academy Of Management Perspectives IBSS Academy Of Management Review ISI SOC SCIENCE Academy Of Management Review IBSS Academy Of Marketing Science Review IBSS Acadiensis...
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...Chapter- One Introduction 1.1 Introduction Unilever is a multi-national corporation, formed of Anglo-Dutch parentage that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever employs nearly 180,000 people and had worldwide revenue of almost €40 billion in 2005. Unilever is a dual-listed company consisting of Unilever NV in Rotterdam, Netherlands and Unilever PLC in London, England. This arrangement is similar to that of Reed Elsevier and that of Royal Dutch Shell prior to their unified structure. Both Unilever companies have the same directors and effectively operate as a single business. The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschow while Patrick Cescau is Group Chief Executive, who will retire at the end of 2014. Mr Paul Polman will succeed Patrick Cescau as Group Chief Executive. The company is widely listed on the world's stock exchanges. 1.2 Origin of report Since practical orientation is an integral part of the MBA program, I tried to expose real life performance of Unilever by preparing this report. To prepare this report I have come across with different information of the Unilever. From the collected information I understand the company’s activities in the market as Unilever as in their internal preparation for marketing and others activities. I expect that this report will fulfill the requirement of MBA program...
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...Introduction Unilever is a multi-national corporation, formed of Anglo-Dutch parentage that owns many of the world’s consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever employs nearly 180,000 people and had worldwide revenue of almost €40 billion in 2005. Unilever is a dual-listed company consisting of UnileverNV in Rotterdam, Netherlands and Unilever PLC in London, England. This arrangement is similar to that of Reed Elsevier and that of Royal Dutch Shell prior to their unified structure. Both Unilever companies have the same directors and effectively operate as a single business. The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschow while Patrick Cescau is Group Chief Executive, who will retire at the end of 2008. Mr Paul Polman will succeed Patrick Cescau as Group Chief Executive. The company is widely listed on the world’s stock exchanges. 1.2 Origin of report Since practical orientation is an integral part of the BBA program, I tried to expose real life performance of Uniliver by preparing this report. To prepare this report I have come across with different information of the Uniliver. From the collected information I understand the company’s activities in the market as Uniliverll as in their internal preparation for marketing and others activities. I expect that this report will fulfill the requirement of BBA program and provide a clear idea about the Uniliver activities and other multi-national...
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...2012 Doing business in a more transparent world C O M PA R I N G R E G U L AT I O N F O R D O M E S T I C F I R M S I N 1 8 3 E C O N O M I E S © 2012 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org All rights reserved. 1 2 3 4 08 07 06 05 A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818...
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