Financial Analysis

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Using the case study Pepsico Changchun Joint Venture: Capital Expenditure Analysis (9B00N16):

Construct 2 sets of NPV & IRR analysis on the proposed joint venture: one including the concentrate sales, and the other set without the concentrate sales. Based on the results, what would be your decision on the proposed joint venture?

Solution Preview

Two sets of NPV and IRR analysis on the proposed joint venture, one without concentrate sales and the other with concentrate sales:

We use the discount rate of 13% for the NVP analysis. For the joint venture as a whole the NPV is 90,164 and if we take 57.5% of it we get the NPV applicable to the US Company, this is 51,844. The capital invested is spread over the years and we take the NPV of the investment at 13% and we get ...

Solution Summary

Financial Analysis is discussed in great detail in this solution.

$2.19

Purchase Solution

$2.19