Give three financing alternatives for expanding Toyota's operations into Brazil.
Alternative Financing Arrangements
I'm working on paper in which I am proposing expansion of Toyota's operations into Brazil. I have already discussed the capital budgeting process and prepared approximate calculations of NPV and IRR for the venture; however, I need help with discussing the availability of alternative financing arrangements. I need to discuss at least three alternatives in no more than 400 words.
Brazil is the fifth largest country in world. Brazil is the world's tenth largest economy at market exchange rates and the ninth largest in purchasing power. In 2007, Brazil launched a four-year plan to spend $300 billion to modernize its road network, power plants and ports (Wikipedia, 2010)
Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. Consumer and investor confidence revived and GDP growth returned to positive in the second quarter, 2009. The Central Bank expects growth of 5% for 2010."
GDP (purchasing power parity):
$2.025 trillion (2009 est.)
Country comparison to the world: 10
$2.029 trillion (2008 est.)
$1.931 trillion (2007 est.)
note: data are in 2009 US dollars
The expert gives financing alternatives for expanding Toyota's operations into Brazil.