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Assignment 2 Case study Tianjin Plastics Power launch By: Bart Hoogenboezem-1587080 Rory Deen-1813900 Johan train den Brink - 2523456 run into: 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 demonstrate flips. Now it focuses on the Asiatic market. In particular a joint post with Tianjin Plastics, a regime owned Chinese company that needed a source plant which would provide all their power needs. In this faux pas study first the several risks of this joint venture are described. After this the cash flows are used to purge the clear up Present Value (NPV) of the ramble and for Maple itself. This NPV will be computed for triad different investment opportunities of Maple. These are the direct investments in U.S. Dollars, the backwards to back loan and the investment in Renminbee (RMB). In this tally alike the po ssibility of depreciation and appreciation of the RMB is used. 2. seam and finance Risks There are several parties involved in the project by providing debt or equity. All these parties have to wangle with various(a) forms of business and financial support risks. The equity providers are Maple Energy, Tianjin Plastics and MOPI.

The debt providers are the equipment vendors, the entrust of China, a West Coast U.S. Bank, a Canadian situate and a Japanese bank. Construction risk The most big(p) risk with respect to pull is the completion risk, which means that the project may not be correct in time . new(prenominal) construction risks are th! at 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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