File Name: groupe ariel s a parity conditions and cross border valuation .zip
Case solution for the Groupe Ariel case study in which the company reviews a proposal to buy and use cost-saving equipment at a manufacturing facility in Monterrey. The equipment will allow the company to automatically recycle and remanufacture cartridges of toner and printer. Recycling and remanufacturing of these cartridges is an important venture of Ariel's business. The corporate policy of Ariel necessitates an analysis of the discounted cash flow DCF and a net present value NPV estimate for capital expenditures in international markets.
It is facing the challenge of coming up with the decision on which currency to use: the Euro or the peso. How should this NPV be translated into Euros? Compute the two sets of calculations and corresponding NPVs. How and why do they differ? How should we incorporate such an expectation into his NPV analysis? Should Groupe Ariel approve the equipment purchase? Not the questions you were looking for? In addition to the cost savings, the tax benefits of depreciation that is obtained through the capital expenditure should also be taken into account.
Since the old equipment is being sold at instead of the book value of , we are getting a loss of We can get a tax benefit by showing this loss on our books. Unlock Case Solution Now! Immediately after purchase, we'll send you an access link to the case solution via email.
We use Paypal and Stripe as our secure payment providers of choice. We are the marketplace for case solutions - created by students, for students. Case answers for Groupe Ariel S. Using the operating costs from exhibit 2, we arrive at: In addition to the cost savings, the tax benefits of depreciation that is obtained through the capital expenditure should also be taken into account.
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This kind of analysis is common for companies that are operating in many countries. Groupe Ariel is one such company that is considering investing in a project in its own subsidiary in Mexico. The company manufactures and sells printers, copiers and other document production equipment in many countries. As far as, expansion into new markets is concerned, company is very slow in taking initiatives as compared to its competitors owing to the recent recession. But the management of the company believes that better durability and lower after-sales service costs of their products enable the company to build customer loyalty. The company is now considering replacing the manual equipment used for recycling in Mexico by new equipment that requires less material and labour costs. But, the uncertainty linked with certain macroeconomic factors like exchange rate, inflation and interest rate has made the valuation of the project very complex.
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When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version. Groupe Ariel.
We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you! Published by Berniece Grant Modified over 4 years ago. Ariel requires a DCF analysis and an estimate of NPV for capital expenditures of this size in its newer foreign subsidiaries.
When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version. Groupe Ariel evaluates a proposal from its Mexican subsidiary to purchase and install cost-saving equipment at a manufacturing facility in Monterrey. The improvements will allow the plant to automate recycling and remanufacturing of toner and printer cartridges, an important part of Ariel's business in many markets. Ariel corporate policy requires a discounted cash flow DCF analysis and an estimate for the net present value NPV for capital expenditures in foreign markets. A major challenge for the analysis is deciding which currency to use, the Euro or the peso. The case introduces techniques of discounted cash flow valuation analysis in a multi-currency setting and can be used to teach basic international parity conditions related to the value of operating cash flows. Compare discounted cash flow and net present value analysis in multiple currencies.
- Con permiso. Не дождавшись ответа, он вошел. Типичная для Испании туалетная комната: квадратная форма, белый кафель, с потолка свисает единственная лампочка.
- Это грязный трюк. - Трюк? - Теперь уже Стратмор не мог скрыть свое раздражение. - Это вовсе не трюк.
Полностью отключив электроснабжение, они могли бы остановить работу ТРАНСТЕКСТА, а вирус удалить позже, просто заново отформатировав жесткие диски компьютера. В процессе форматирования стирается память машины - информация, программное обеспечение, вирусы, одним словом - все, и в большинстве случаев переформатирование означает потерю тысяч файлов, многих лет труда. Но ТРАНСТЕКСТ не был обычным компьютером - его можно было отформатировать практически без потерь. Машины параллельной обработки сконструированы для того, чтобы думать, а не запоминать.
При всем моем уважении к вам, сэр, - сказала Мидж, - я бы порекомендовала послать в шифровалку бригаду службы безопасности - просто чтобы убедиться… - Ничего подобного мы делать не будем. На этом Мидж капитулировала: - Хорошо. Доброй ночи. - Она двинулась к двери.
Немедленно. Соши побежала к своему терминалу.
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