Gulf Company is an Italian based manufacturer of radios. The company’s senior management team has believed for several years that there is an opportunity to increase sales i

Gulf Company is an Italian based manufacturer of radios. The company’s senior management team has believed for several years that there is an opportunity to increase sales in the domestic market and wish to set up a manufacturing subsidiary in Tanzania. Setting up the Tanzanian subsidiary would involve construction of a new factory in Dar es Salaam. The initial project cash investment is estimated at Euro 1,000,000 divided as follows: • Fixed assets • Working capital requirements Euro 900,000 Euro 100,000 Production and sales are expected to be constant at 20,000 units per annum. The average price per radio is estimated as follows: Year 1: TZS 55,000 Year 2: Year 3: Year 4: TZS 53,000 TZS 56,000 TZS 59,000 The variable cost ratio is forecast at 30% of the selling price and is expected to remain constant. Annual fixed costs (excluding depreciation), are forecast at TZS 80,000,000. As per agreement between Gulf company and the authorities in Tanzania, depreciation expenses are not tax allowable. Inflation for each economy in the next four years is expected to be: ITALY 4% TANZANIA 6% REQUIRED: The cost of capital for the company is 10%. The spot exchange rate is TZS 1400/Euro. Corporate tax in Tanzania is 30%, in Italy 40%. Tax is payable, and allowances are available, one year in arrears. The government of Tanzania is anxious to encourage foreign investment and thus allows overseas investors to repatriate an annual cash dividend equal to that year’s after tax accounting profit. Cash remitted to Italy from the subsidiary is not taxable in Italy. The after tax realizable value of the investment in four years’ time is expected to be approximately TZS 200 million. Evaluate whether Gulf Company should establish the Tanzanian Subsidiary.

Share This Post

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

To: Consulting Team From: CEO Re: Research Project and Presentation For this project, you will be focusing on Organizational Change, which is discussed in Chapter 16. Organizational change can come ab

To: Consulting TeamFrom: CEORe: Research Project and Presentation For this project, you will be focusing on Organizational Change, which is discussed in Chapter 16. Organizational change can come about for a number of reasons, which include problems within the organization that decreases its reputation or product confidence, innovation, technological improvements,

Assignment Overview In this week’s Strategic Management Research Project presentation, you will demonstrate your understanding of strategic management, apply critical thinking and problem-solving skil

Assignment Overview In this week’s Strategic Management Research Project presentation, you will demonstrate your understanding of strategic management, apply critical thinking and problem-solving skills, and exercise your skills in quality control when you evaluate the effectiveness of operational changes at Alphabet, Inc. Recall that you are the assistant strategic development

For this essay assignment, you are tasked with locating a company or business that has experienced an ethical issue within the last 5 years. In your essay, you will include the following information:

For this essay assignment, you are tasked with locating a company or business that has experienced an ethical issue within the last 5 years. In your essay, you will include the following information: the name of the company or business and a description of the ethical issue that took place,

You will create two concept maps using PowerPoint. You will need to use slide notes to expand upon the topics of your concept maps. The goal is to create a visualization of your responses to the promp

You will create two concept maps using PowerPoint. You will need to use slide notes to expand upon the topics of your concept maps. The goal is to create a visualization of your responses to the prompts listed below. Keep it simple and readable. You may search the internet to

For the second assignment, you will continue to use the “Repairing Customer Satisfaction’ Download “Repairing Customer Satisfaction’case study to develop the second of two progress reports. You will a

For the second assignment, you will continue to use the “Repairing Customer Satisfaction’ Download “Repairing Customer Satisfaction’case study to develop the second of two progress reports. You will access the case study via the link provided and follow the instructions below. Review “Types of Data Analysis” Download “Types of Data Analysis”, for additional information

Pageof 3ZoomBUSI 830 Page 1 of 3 BIBLICAL, ETHICAL RESEARCH ASSIGNMENT INSTRUCTIONS OVERVIEW In this assignment, you will research Biblical, ethical research. Establishing a firm ethical foundation ba

Pageof 3ZoomBUSI 830Page 1 of 3BIBLICAL, ETHICAL RESEARCH ASSIGNMENT INSTRUCTIONSOVERVIEWIn this assignment, you will research Biblical, ethical research. Establishing a firm ethicalfoundation based on Biblical principles can reduce the researcher’s bias as well asmisrepresenting the literature and study findings. As Christians, we want to ensure we are beingobedient to God

This is a a journAl entry. No Ai or plagiarism included, pleas! Write a 525- to 700-word response to the following prompts in your journal entry: Identify Alphabet’s short-term and long-term goals.Ev

This is a a journAl entry. No Ai or plagiarism included, pleas! Write a 525- to 700-word response to the following prompts in your journal entry: Identify Alphabet’s short-term and long-term goals. Evaluate how mergers and acquisitions in the last 3 to 5 years have contributed to Alphabet’s performance and affected

ou must then post 1 reply to one of your peers of as close to 300 words as possible by 11:59 p.m. (ET) on Sunday of the assigned Module: Week. For each thread, you must support your assertions with at

ou must then post 1 reply to one of your peers of as close to 300 words aspossible by 11:59 p.m. (ET) on Sunday of the assigned Module: Week. For each thread, youmust support your assertions with at least 3 peer-reviewed, scholarly citations (besides thepossible use of the course texts

Discussion Thread: Case Study Research: Digital Considerations Types of Iterative Bounding Regarding ‘iterative bounding’, discuss the 3 types (spatial, temporal, and relational). Application of Boun

Discussion Thread: Case Study Research: Digital Considerations Types of Iterative Bounding Regarding ‘iterative bounding’, discuss the 3 types (spatial, temporal, and relational). Application of Bounding to an Element of a Digital Case Study Design THEN show how you would apply at least 1 of these 3 types of bounding to 1 of 8

BUSI 830 Page 1 of 2 DATA GATHERING TOOLS AND ANALYSIS TECHNIQUES ASSIGNMENT INSTRUCTIONS OVERVIEW While data is information, evidence is data in support of some proposition. Collecting and analyzing

BUSI 830Page 1 of 2DATA GATHERING TOOLS AND ANALYSIS TECHNIQUES ASSIGNMENTINSTRUCTIONSOVERVIEWWhile data is information, evidence is data in support of some proposition. Collecting andanalyzing data is a major element of the work of a case study that requires severalconsiderations, such as delimitations, limitations, and assumptions; triangulation; population andsampling, etc. This

1) PERSONAL EXPERIENCE This section is intended to give you, as the applicant, the opportunity to discuss how your lived experiences, including those outside of your academic experiences, resulted in

1) PERSONAL EXPERIENCE This section is intended to give you, as the applicant, the opportunity to discuss how your lived experiences, including those outside of your academic experiences, resulted in a positive outcome that helped prepare you for this stage in your life. This section is not intended to compel

Country Project Report : FIJI Students will conduct research on an assigned country and complete a report about the country including the following information: Political environment Political system

Country Project Report : FIJI Students will conduct research on an assigned country and complete a report about the country including the following information: Political environment Political system (provide a score as well as information about the scale, state where the country lies on the continuum discussed in class, and

You will continue to use the “Repairing Customer Satisfaction” Download “Repairing Customer Satisfaction”case study to develop a hypothesis for your framed problem. This will be your first draft; you

You will continue to use the “Repairing Customer Satisfaction” Download “Repairing Customer Satisfaction”case study to develop a hypothesis for your framed problem. This will be your first draft; you will develop the final draft integrating your instructor’s feedback in the Week 6 Assignment. Instructions Based on the case study “Repairing Customer Satisfaction” Download “Repairing

Using the company Amazon.com, conduct a comprehensive analysis through the lens of strategic management. The paper should be 8–10 pages in length (not including title page and references) and incorpor

Using the company Amazon.com, conduct a comprehensive analysis through the lens of strategic management. The paper should be 8–10 pages in length (not including title page and references) and incorporate at least 10 high-quality academic or professional sources (e.g., peer-reviewed journals, credible business publications, textbooks). Using concepts and frameworks from

Prepare a detailed 7-8 page comprehensive analysis based on an integrated view of international business management using the company Toss, toss.im, a South Korea based finance app that plans to expan

Prepare a detailed 7-8 page comprehensive analysis based on an integrated view of international business management using the company Toss, toss.im, a South Korea based finance app that plans to expand services to Australia by the end of 2025. Paper details attached.

This is a journal entry prompt that needs to be written in your own words, no AI or Plagiarism, please ! Continuing your analysis of Alphabet, you will evaluate its strategic effectiveness, organizati

This is a journal entry prompt that needs to be written in your own words, no AI or Plagiarism, please ! Continuing your analysis of Alphabet, you will evaluate its strategic effectiveness, organizational structure, and its internal and external environment for your research journal this week. You will use your

You must then post 1 reply to one of your peers of as close to 300 words as possible by 11:59 p.m. (ET) on Sunday of the assigned Module: Week. For each thread, you must support your assertions with a

You must then post 1 reply to one of your peers of as close to 300 words aspossible by 11:59 p.m. (ET) on Sunday of the assigned Module: Week. For each thread, youmust support your assertions with at least 3 peer-reviewed, scholarly citations (besides thepossible use of the course texts

CASE STUDY METHODOLOGY ASSIGNMENT INSTRUCTIONS OVERVIEW Researchers describe the background of the problem to define the root problem and explain the organizational consequences – this is where you wi

CASE STUDY METHODOLOGY ASSIGNMENT INSTRUCTIONSOVERVIEWResearchers describe the background of the problem to define the root problem and explain theorganizational consequences – this is where you will ‘well-define’ your case study. The problemstatement is a foundational component of the research study. In this assignment, you will beginto craft a single case