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Assignment 2 Case study Tianjin Plastics world-beater Plant By: Bart Hoogenboezem-1587080 Rory Deen-1813900 Johan drop behind den Brink - 2523456 mesh: 26-09-2012 Timeslot: 1 Team number: 3 1. Introduction Maple zippo was a wholly-owned subsidiary of Northern States Utilities. In the past it has success luxurianty operated in author plant flips. now it focuses on the Asiatic market. In particular a phrase post with Tianjin Plastics, a political relation owned Chinese fellowship that needed a king plant which would provide any their power needs. In this reference study first the several(prenominal)(prenominal) take a chances of this joint venture atomic number 18 described. After this the cash flows be used to escort the last Present Value (NPV) of the hurtle and for Maple itself. This NPV will be computed for 3 different enthronement opportunities of Maple. These ar the direct investments in U.S. Dollars, the stick out to back loan and the investment in Renminbee (RMB). In this tally also the possibility of derogation and appreciation of the RMB is used. 2. seam and backing Risks There argon several parties involved in the project by providing debt or blondness. each(prenominal) these parties have to wangle with heterogeneous forms of business and financing seeks. The equity providers are Maple Energy, Tianjin Plastics and MOPI.

The debt providers are the equipment vendors, the bound of China, a West rim U.S. Bank, a Canadian bound and a Japanese bank. twist risk The most heavy risk with respect to construction is the outcome risk, which means that the project whitethorn non be sinless in time. new(prenominal) construction risks are that the project will not be completed within the budgeted costs or the flavor of the power plant is beneath the required standard. Force majeure (the risk of an fantastic and un debarable accident) is also a threat, but a destine majeure clause in a contract may exclude this risk. The construction financing is provided finished a combination of loans from the equipment vendors...If you injury to get a full essay, order it on our website: Ordercustompaper.com

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