The purchasing department has found an excellent global

Reference no: EM13453133

The purchasing department has found an excellent global positioning system circuit card in Germany that can provide your firm with a competitive advantage in the marketplace. Delivery of the circuit cards is 6 months from date of order. The German firm has offered your firm a 2.5% discount on the €3.5 million purchase if paid up front at the time of order; otherwise, the full €3.5 million will be payable in 6 months before delivery, providing that inflation in Germany does not exceed 1.0% for the year. If inflation exceeds 1.0% for the year, the rate of inflation would be added to the €3.5 million. Find out how inflation has been affected after the European Union trade agreement and introduction of the euro. Is inflation likely to increase? Why or why not?

Your supervisor has asked for a recommendation on how Navigation Systems, Inc. should handle the payment and the probable cost of each scenario. You know that your firm's weighted average cost of capital is 9%. Assume that a going concern business will, at a minimum, recover the WACC to achieve at least a breakeven financial position. Therefore, any capital the firm has will generate at least the WACC in returns.

Deliverable: Create an Excel spreadsheet detailing the cost of each scenario, and embed it into a Word document. Provide your recommendations in the Word document as well.

Reference no: EM13453133

Questions Cloud

Summarize some best practices for leading a diverse : imagine that you are an expert in the principles of business leadership. you have been invited to present at a

Describe disturbance and recovery describe one natural and : in this assignment you will investigate the biotic and abiotic structure and function of an ecosystem.choose one of the

How do you find out proper pay scale for employees how do : if an organization decides to hire employees the decision must be made about the compensation method. in addition you

What are the first and second laws of thermodynamics how : what are the first and second laws of thermodynamics? how do these laws affect ecosystems?what does the cycling of

The purchasing department has found an excellent global : the purchasing department has found an excellent global positioning system circuit card in germany that can provide

What approach did each of the countries take and what was : do some research and find the fiscal policy approach used by the u.s. china germany and the u.k. from 2008 until

Describe command and control regulations versus incentive : explain various viewpoints on climate change. explain and justify briefly your viewpoint on the issue of climate

Develop and describe 3-5 primary overarching objectives for : using any or all sources that you have been exposed to throughout the term you will create a strategic plan 10 pages to

Select a specific government tool to support large scale : select a specific government tool to support large scale renewable development and discuss its advantage over other

User Account

All Pages