+1-415-670-9189
info@expertsmind.com
Question on financing operations
Course:- Finance Basics
Reference No.:- EM1349664




Assignment Help
Assignment Help >> Finance Basics

You are the CEO of a medium-sized U.S. manufacturing company that has received several inquiries from prospective buyers of your equipment abroad. Each item of equipment that you produce sells for about $20,000 in the United States and there are prospects for selling up to 50 units to one customer overseas. The problem is that once you have firm orders from overseas buyers you will need financing in order to have the money needed to actually produce those units. Among the financing options raised in an internal company brainstorming session were the following

* Loan from U.S. bank
* Have customer pay in advance

Evaluate and compare the two options that you decide to address. Among other things, be sure to discuss whether the option is workable. Also, be sure to identify additional information that would be needed to make a decision (such as what security the company might have for a loan, etc.)

 




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
Also often referred to as company or corporations law, corporate law can be defined as the set of authorized rules governing the functioning of the most prevalent type of th
where the initial price S0 of the stock is $4 per share. Find an appropriate price (at time 0) for a European-style option, expiring at time 2, whose payout is absolute valu
How would your answer to part a change if the lessee did not expect to pay any income taxes for the next three years but to pay income taxes each year thereafter at a 40% ra
A project has an initial cash outflow of $39,800 and produces cash inflows of $18,304, $19,516, and $14,280 for years 1 through 3, respectively. What is the NPV at a discoun
Complete the Manufacturing Budget on the Budgets tab below by using the information found in the budgeted balance sheet above. The manufacturing budget consists of three par
TechNo stock was $25 per share at the end of last year. Since then, it paid a $1.50 per share dividend last year. The stock price is currently $23. If you owned 300 shares o
Coyote argues that they should use IRR as the basis for making the decision while Bird argues they should be using the NPV. They ask you, as the chief financial officer of t
Pearl invests $80,000 for a 10 percent partnership interest in an activity in which she is a material participant. The partnership reports losses of $500,000 in 2007 & $450,00