Why is now a good time for investment given global context

Assignment Help Corporate Finance
Reference no: EM131312025

Assignment

Prompt: You have already chosen the company (Nordstrom Inc.) you will use for your final project, and you have started a narrative description of your expansion project into another country. In this milestone, you will build on that narrative description providing sufficient detail about the expansion, its costs, and its time frame to give a loan committee a firm sense of the proposed investment. You will also analyze the impact of the investment proposal on your business by explaining why now is the right time for this investment given the global context and by explaining how the investment is a good strategic fit with your company. This milestone addresses all of Section II and Section III (Parts A and B only) of the final project.

Specifically, the following critical elements must be addressed:

II. Investment Project: Use this section to describe the investment for which you are seeking funding, its costs, and time frame. Specifically, you should:

A. Describe the investment project. Be sure to provide sufficient detail to give the loan committee a firm sense of the parameters of the activity, the need for it, and what financial metrics are relevant for determining success. In other words, what do you propose to do, where, what marketplace ?need will it fill, and how will you measure success?

B. Specify the resources the project will require and where these resources will come from. In addition to noting the amount of the loan you are ?requesting, you should also consider human resources, facilities, government approvals, intellectual property, access to natural resources, and other ?resources that might be required to carry out the project.

C. Time frame. When will the project start, what is the anticipated economic life of the proposed expansion, and how will you decide if, when, or how ?to exit? Justify your choices with appropriate financial metrics.

III. Justification: In this section, you should analyze the impact of the investment proposal on your business. In particular, you should cover:

A. Why is now a good time for this investment given the global context? Justify your response, citing specific external factors such as trade regulations, foreign currency considerations, or trends in foreign direct investment that might affect business financial decisions.

B. Strategic fit. Use this section to discuss why the investment proposal makes sense for your company strategically. Specifically:

1. How does the investment align with the company's organizational and financial priorities? Support your argument with evidence from ?company reports and financial statement analysis designed to persuade the lender that the investment is a good strategic fit for your ?company.

2. How does the project fit within the global microeconomic environment? Support your response with evidence. For example, would the ?expansion tap unmet demand for the company's key products or services or fill a new niche? How do you know?

3. How does the project build on the organization's core competencies and comparative advantage? For example, does the company have a ?strategic advantage from intellectual property, regional expertise, suppliers, or organizational structure?

Reference no: EM131312025

Questions Cloud

Arrangements of objects : Define the number of all the arrangements of 8 objects choosing 2 at a time without repetition.
Analyzed your budget and determined that you can invest : You have analyzed your budget and determined that you can invest $60 each month to save towards college expenses for the children . If you invest in an ordinary annuity at 6% annual interest which is compounded monthly, how much will you have when..
Show impact of business transactions on accounting equation : Show the impact of business transactions on the accounting equation; analyze the impact of business transactions on accounts.
How many people bought only the wall street : There were 100 people in the local news-stand.42 bought the Wall Street journal,36 bought the New York Times,and 18 bought both papers. Complete the Venn diagram below and find: a. How many people bought only the Wall Street?
Why is now a good time for investment given global context : Why is now a good time for investment given global context? Justify your response, citing specific external factors such as trade regulations, or trends in foreign direct investment that might affect business financial decisions.
What are motivating operations : What are Motivating Operations (MO) and why is this behavior concept so important for a Functional Behavioral Assessment? In your response please outline the specific definition of the concept and review two of the various types of MO's. Be sure t..
Analyze the impact of business transactions on accounts : Analyze the impact of business transactions on accounts;- Show the impact of business transactions on the accounting equation;
Estimate the total volume of water : The density of TCE is 1.47 g/cm3 and its aqueous solubility is 1100 mg/L. Assume no retention of TCE on aquifer solids.
Combined versus the amount of acid in the final mixture : Check your solution by determining how much acid is in the two amounts that are combined versus the amount of acid in the final mixture.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Calculate the cost of capital for marriotts divisions

Calculate the cost of capital for Marriott's divisions, note that each division will have different equity beta and cost of debt.

  Prepare a summary on the firms overall financial performance

Prepare an executive summary on the firm's overall financial condition and performance. Your summary must be at least one page, but no more than 3 pages.

  Question 1anna is a vice president at the j corporation the

question 1anna is a vice president at the j corporation. the company is considering investing in a new factory and anna

  What is the irr on project

The project net working capital is equal to 10% of the next year's revenue. The tax-rate is 35%. What are the project's net cash flows for years 0-3? What is the IRR on this project?

  What is the most you would be willing to pay per share

If you can earn 13% on similar-risk investments, what is the most you would be willing to pay per share and if you can earn only 10% on similar-risk investments, what is the most you would be willing to pay per share?

  Calculate free cash flow using ebit

Calculate cash flow provided by operating activities, calculate free cash flow using CFO and calculate free cash flow using EBIT

  1 jacob from twilight can obtain an 85 percent loan with an

1. jacob from twilight can obtain an 85 percent loan with an 8 percent interest rate and monthly payments. the loan is

  What is the strategic net present value

What is the strategic net present value of this project if the cost of capital is 5% - Suppose that a project costs $1 million for each of the first five years. At the end of the fifth year,

  Evaluate average revenues per store

The Home Depot to evaluate average revenues per store, capital spending per new store, and ending inventory per store in 2008

  1 horizontal and vertical analysis of the income statements

1. horizontal and vertical analysis of the income statements for the past three years all yearly balances set as a

  Question equity transactions and adjustments statement of

question equity transactions and adjustments statement of changes in equity.on 30 june 2013 the equity of lilium ltd

  Determine the weighted average cost of capital

Calculate the weighted average cost of capital and calculate the net present value (NPV) with the WACC

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd