Programme Msc Management Finance Stream - 3716 Words

Programme MSc Management – Finance Stream Module name Corporate Finance Schedule Term May 2014 Student Reference Number (SRN) 1054922 Report/Assignment Title Summative Assignment Date of Submission (Please attach the confirmation of any extension received) Tuesday 19th August 2014 Declaration of Original Work: I hereby declare that I have read and understood BPP’s on plagiarism and that this is my original work, researched, undertaken, completed and submitted in accordance with the requirements of BPP Business School. The word count, excluding contents table, bibliography and appendices, is __3,025_ words. Student Reference Number: 1054922 Date: 13/08/2014 By submitting this coursework you agree to all rules and regulations of BPP†¦show more content†¦Robert is more prudent about this new project. He has conscience that this project will demand excessive amount of money and it would not allow RMC to undertake another major investment for the next few years. Furthermore, RMC might suffer a shortage of quality mining staffs in Columbia; therefore they will have to spend more money to get better-qualified technicians. Helen was more optimistic about this project. She thought that Boraca site was a big opportunity that RMC must absolutely not lose. Robert was principally concerned about the political stability of the Government stability. As the project will last 20 years, there is a risk that the government nationalizes the oil or coal industry within this period. One of the major concerns is about the unclear Columbian regulation about ground rules for overseas investors. It was ambiguous and blurred on the withdrawal profit from Columbia. Furthermore, Helen seemed not worried about Colombia political climate. She argued that there is no reason for the government to nationalize RMC site over 20 years. Columbian government priorities are focusing on education and infrastructure development rather than oil or coal industry. Robert was also tempted by the Intercoa offer. Intercoa offered five million dollars to RMC for the rights of this project. This offer would allow Robert to pursuit his other projects and avoid every risk associated