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Assignment 2 Case study Tianjin Plastics Power rig By: Bart Hoogenboezem-1587080 Rory Deen-1813900 Johan train den Brink - 2523456 get a line: 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 ground flips. Now it focuses on the Asiatic market. In particular a joint post with Tianjin Plastics, a giving medication owned Chinese company that needed a spot plant which would provide all their power needs. In this bailiwick study first the several risks of this joint venture argon described. After this the cash flows are used to take to the crystallise Present Value (NPV) of the go for and for Maple itself. This NPV will be computed for three different investment opportunities of Maple. These are the direct investments in U.S. Dollars, the digest to back loan and the investment in Renminbee (RMB). In this figuring in like manner the possibility of depreciation and appreciation of the RMB is used. 2. seam and finance Risks There are several parties involved in the project by providing debt or equity. All these parties have to wangle with different 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 posit of China, a West Coast U.S. Bank, a Canadian swan and a Japanese bank. Construction risk The most minatory risk with respect to whirl is the completion risk, which means that the project may not be unblemished 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 financi ng is provided through a combination of loan! s from the equipment vendors...If you loss to get a full essay, order it on our website: OrderCustomPaper.com

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