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    PepsiCo Changchun Joint Venture

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    PepsiCo East Asia was assessing the financial implications of the firms proposed equity joint venture in the city of Changchun in China. This joint venture was special because it would be one of the first green-field equity joint ventures in China. PepsiCo would have control over both the board and day-to-day management. . The evaluation process of the project involved the use of capital budgeting tools namely net present value and internal rate of return. The final decision would be made after the approval of President PepsiCo Asia-Pacific.

    There was an increasing demand for American carbonated soft-drinks in China. PepsiCo's assessment was that China's political and economic outlook was positive and there was a commitment to economic reforms. There ...

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    PepsiCo Changchun Joint Venture is discussed very comprehensively in this explanation..