ASSIGNMENT A project runs for two years and has a present value of $100 million today and an annual volatility of 20%. Assume that the simple annual risk-free rate is 5%. If the project costs $102 million, should you do the project based on the NPV analysis? Consider a two-step binomial tree for the PV […]
Evaluate the decision to use the overall Group cost of capital for the NPV analysis.
Question 1 • a.Analyse the current forms of finance available to the Fusion Group. • b.Recommend improvements in how the Group finances its business operation. • c.Evaluate the three debt finance proposals outlined in Appendix five and recommend which should be chosen. • a.Evaluate the proposal to move the manufacturing facility from China to Mexico […]