Академический Документы
Профессиональный Документы
Культура Документы
India
Singapore
$24,400,000
$16,200,000
$74,500,000
Property Prices
$8,000,000
$7,600,000
$28,000,000
Leasing Costs
$11,600,000
$13,600,000
$36,460,000
before, high labor costs. But, in my opinion, the availability of high skilled
labor force speaking both Chinese and English and proximity to other
countries of this emerging region, may make Singapore as a good first step for
the company in this region.
2. To build a new manufacturing facility or purchase an existing one? How to
finance the project: using cash from one of the regions, borrowing in the
capital markets, or leasing?
As mentioned in the previous section, the acquisition of existing
facility would be less expensive than building a new facility, $28,130,000
versus $75,450,000. The total cost of acquisition of a facility and equipment
would be $163,130,000.
Midwest Electronics might partially finance the Asia Project by
corporate borrowing. This option is quite attractive, given decreasing debt-tocapital ratio, a low A rating, the companys CoE of 10% and the possible risk
associated with full financing through accumulated cash. The other part should
be financed through the generated cash on European market.