Assignment:
Q1. Why are loan repayments by IDC-U.K. to Lloyds and NEB treated as a cash inflow to the parent company?
Q2. How sensitive is the value of the project to the threat of currency controls and expropriation? How can the financing be structured to make the project less sensitive to these political risks?
Q3. What options does investment in the new British diesel plant provide to IDC-U.S.? How can these options be accounted for in the traditional capital-budgeting analysis?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.