international letters of credit

Grading Criteria

Proficient

Maximum Points

Analyze specific risks associated with building a manufacturing facility in Brazil. Include a description of each of the following types of risks and how they may affect the decision to build the new facility.

· Exchange risks

· Country risks

· Political risks

Analysis is complete, accurate, and specific. All three types of risks are described and an accurate analysis of how they affect the decision to build the facility is included.

56

Calculate GBATT’s WACC.

WACC is correctly calculated.

40

Using the WACC and the above cash flows, calculate the NPV of each project.

The NPV is correctly calculated.

40

Justify the importance of knowing a company’s WACC and NPV.

Justification is clear, accurate, and complete.

48

Recommend the facility to build based on the NPV.

Recommendation is clearly formulated. Justification of the recommendation is appropriate.

48

Use current exchange rates to convert the NPV’s to the Brazil real.

Conversion is accurate.

36

Writing Standards

Write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources (i.e. APA); and display accurate spelling, grammar, and punctuation.

Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation.

32

Total:

300