Taking in consideration the positive changes in the enthronisation funds climate, P& angstrom unit;G Mexico immovable to increase its manufacturing competency to meet the needs of the growing lineage ,by making a radical capital investment of about(predicate) 150 cardinal in three divisions. The main alternatives for financial support this investment ar go badd below. The approach of debt financing is influenced by interest run, ostentatiousness and assesses. We will give a quantitative value of the in a higher place factors and analyze how they differ from oneness financing alternative to another. The alternatives goat be divided into two main groups: loans interpreted in US dollars and loans taken in Mexican pesos. The discount rate utilise is the angleed comely monetary value of capital. As we move intot pay back the weight and cost of equity and the weight of debt we as add togethere that the burthen cost of capital is 6% for the loans taken in US dollar s and 14% for the loans in Mexican pesos. The number 1 descent of financing is winning a loan in US dollars, with the approval, but not active participation of P& axerophthol;G. The interest rate for this loan is fixed and would come 12% for the three stratums period. The average amount of debt is 20 gazillion in the first year, 55 millions in the present moment year and 90 in the third year.
The devaluation effect, is calculated by multiplying the average debt taken with the forecasted devaluation and with 80% (because only 80% of the total sum is needed in Mexican pesos.) From the devaluation effect, each year has been excluded 20% of the average s! um needed. Inflationary component tax differs from one year to another, according to the change in the take repel of inflation. For the exact values see table 1. The total cost of this kind of debt is 19,0265 millions US dollar. Total interest expenses are 19,8 million US dollars, while the depreciation cost and inflationary be are 5,828 and 7,749 million dollars each. The second source of financing is taking a US dollars loan with the guarantee of P& amp;G. In this case the interest rates would be 7%...If you want to get a full essay, order it on our website: OrderCustomPaper.com
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