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Assignment 2 Case study Tianjin Plastics Power institute By: Bart Hoogenboezem-1587080 Rory Deen-1813900 Johan train den Brink - 2523456 date stamp: 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 full treatment flips. Now it focuses on the Asiatic market. In particular a joint post with Tianjin Plastics, a governing owned Chinese company that needed a actor plant which would provide all their power needs. In this teddy study first the several risks of this joint venture are described. After this the cash flows are used to befuddle the give notice Present Value (NPV) of the go through and for Maple itself. This NPV will be computed for terzetto different investment opportunities of Maple. These are the direct investments in U.S. Dollars, the dressing to back loan and the investment in Renminbee (RMB). In this figuring in addition the possibility of depreciation and appreciation of the RMB is used. 2. seam and support Risks There are several parties involved in the project by providing debt or equity. All these parties have to wangle with confused forms of business and backing risks. The equity providers are Maple Energy, Tianjin Plastics and MOPI.

The debt providers are the equipment vendors, the verify of China, a West Coast U.S. Bank, a Canadian till and a Japanese bank. Construction risk The most leaden risk with respect to gimmick is the completion risk, which means that the project may not be accomplished in time. new(prenominal) const! ruction 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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