A. Review the different items that are used in the

a. Review the different items that are used in the multinational example (Spartan Inc.). Describe the items that would be included on a spreadsheet if you were to conduct a multinational analysis of investing dollars to expand your existing language business in a different location.

b. Assume that you recognize your limitations in predicting the future of the invoice currency for your expanded business. You think that there are several possible scenarios, each with equal probability of occurrence. Explain how you could use this information to estimate the future NPV and make a decision about whether to accept or reject the project.

c. Now assume that there is also much uncertainty about the demand for your service by individuals. Explain how you can attempt to incorporate this uncertainty along with the uncertainty of movements so that you can make a decision about whether to accept or reject the project.

d. Explain how you would derive a required rate of return for your analysis. What type of information would you use to derive the required rate of return?

 

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