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Assignment 2 Case study Tianjin Plastics Power sic By: Bart Hoogenboezem-1587080 Rory Deen-1813900 Johan train den Brink - 2523456 day of the month: 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 successfully operated in author coiffure flips. Now it focuses on the Asiatic market. In particular a joint post with Tianjin Plastics, a governance owned Chinese company that needed a reason plant which would provide all their power needs. In this teddy study first the several risks of this joint venture atomic number 18 described. After this the cash flows are used to ensure the unclutter Present Value (NPV) of the offer and for Maple itself. This NPV will be computed for triplet different investment opportunities of Maple. These are the direct investments in U.S. Dollars, the nates to back loan and the investment in Renminbee (RMB). In this enum eration similarly the possibility of depreciation and appreciation of the RMB is used. 2. seam and financial support Risks There are several parties involved in the project by providing debt or equity. All these parties have to wangle with variant forms of business and financial support risks. The equity providers are Maple Energy, Tianjin Plastics and MOPI.

The debt providers are the equipment vendors, the till of China, a West Coast U.S. Bank, a Canadian cashbox and a Japanese bank. Construction risk The most large(p) risk with respect to anatomical structure is the completion risk, which mea ns that the project may not be established ! in time. new(prenominal) construction risks are that the project will not be completed within the budgeted costs or the quality of the power plant is below the required standard. Force majeure (the risk of an fantastic and un debarable accident) is also a threat, but a delineate majeure clause in a contract may avoid this risk. The construction financing is provided through a combination of loans from the equipment vendors...If you loss to get a full essay, order it on our website: OrderCustomPaper.com

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