Evaluate the Investment Assignment

Hatfield Manufacturing Systems wants to invest in a new plant. The details are as follows:

The new plant will cost TL110m of which TL15m will be the cost of 3D print machines. It is company policy to depreciate the full cost of machines over 10 years. It is proposed that net surplus cash flows from the plant will be repatriated to HMS each year as a dividend. (Note – there is no double taxation of profits). Sales in the first year of operation (2020) are forecast to be TL15,518k and are expected to grow at 12% per year thereafter. Variable production cost will be TL1,467k in 2020 of which 35% will be labour cost. Labour costs are forecast to increase by 2% per year and other variable costs by 1.5% per year. The project also has fixed costs of TL1,144 which will increase at 1% per year. The beta of HMS plc is believed to be 1.60. The normal corporation tax rate in Turkey is 22.0% but the Turkish government is keen to encourage DFI and applies a lower rate of 10% for initial DFI projects. The UK corporate tax rate is currently 19%. Both Turkish and UK corporate taxes are payable at the end of the year in question (you may assume for the purpose of this case that accounting profit and taxable profit are identical). All of the increased production from the Turkish plant will be exported in approximately equal proportions to South Korea, Canada and the EU. Thus the firm will have cash flows denominated in Won, €, and $Ca. The sales revenues given above are the TL equivalent of these cash flows at current exchange rates

The HMS Board have a number of concerns and questions relating to the project. Is the project financially viable? Should they adopt a foreign or home country perspective? Will the project add value to HMS plc? How will exchange rate volatility impact on the value created for HMS? How should the project be financed?

Calculate the NPV, IRR, Accounting Rate of Return, WACC, CAPM, and other data necessary to evaluate the investment. Kindly show all the calculations in Excel. Get Finance homework help today

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
English 101
Always use Grammarly before submitting your papers.
Customer 462495, April 6th, 2022
Thanks for your cooperation. Great work.
Customer 463647, December 16th, 2022
English 101
Customer 458101, April 23rd, 2022
Good work.
Customer 456821, May 18th, 2022
Business Studies
Customer 453413, April 16th, 2020
Customer 456821, February 20th, 2022
Human Resources Management (HRM)
Excellent combination.
Customer 462485, April 3rd, 2022
Excellent work.
Customer 462359, March 30th, 2022
Computer science
Didn't find until the last minute that I needed to pay extra money for an extra page, which caused my stuff to be turned in late...
Customer 452515, March 25th, 2020
Well-written content. The writer follows instructions to the letter upon revisions.
Customer 463679, December 13th, 2022
Good job.
Customer 453625, May 28th, 2022
A job well done
Customer 463679, May 9th, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat