DFI and NPV Scoring Guide, International Finance

DFI AND NPV

RESOURCES

DFI and NPV Scoring Guide.
APA Style and Format.
Writing Feedback Tool.
QUESTIONS AND APPLICATIONS

Prepare answers to each of the questions and application problems indicated below. Your response should include a statement of the problem or question, along with your answer and narrative analysis as needed.

The owner of a U.S. company that produces sound systems for home entertainment theaters is considering the establishment of an Australian-based company to produce and sell the systems there. He is being told that the production costs would be one third the cost of producing them in the United States. Considering the economic factors, is this a good strategy that you could recommend to the owner?
In your International Financial Management text, complete “How Country Risk Affects NPV,” Problem 19, page 515.
ASSIGNMENT SUBMISSION

In all cases where numeric solutions are expected, provide full documentation of the process used to reach the solution, using Excel to provide computational details.

Where analysis is expected, use information from the textbook to inform your analysis—not replace it—incorporating creativity, critical thinking, and real-life perspectives. Cite all resource materials used in your response with APA (6th edition) style and format.

A thorough, professional presentation of your analysis and results is an important consideration. Enhance your presentation skills by using applicable tools, such as tables, graphs, diagrams, and commentary as appropriate in all assignments in this course.

Submit your responses in the assignment area. Solutions for the problems will be posted the subsequent week. Refer to the scoring guide prior to submission to ensure you meet all evaluation criteria.

Note: Your instructor may also use the Writing Feedback Tool to provide feedback on your writing. In the tool, click the linked resources for helpful writing information.