ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DOT COM ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DO | Page 27

6. Based on table 1.1., explain how the balance of payments identity
(CA+FA+Capitalaccount=0) is satisfied after the statistical
discrepancy adjustment.
7. Download "Table 1.1. U.S. Net International Investment Position at
the End of thePeriod", from the BEA website. Plot in one figure the
total U.S. Assets, Liabilities,and Net Investment Position (or External
wealth) between 1976 and 2015 (at an annualfrequency).
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The Finance Department of Zeta Auto Corporation
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Introduction:
You have recently been hired as a Financial Analyst in the Finance
Department of Zeta Auto Corporation which is seeking to expand
production. The CFO asks you to help decide whether the firm should
set up a new plant to manufacture the roadster model, the Zeta
Spenza.
Deliverable:
Write a report providing the CFO with your recommendation whether
Zeta should set up the plant to produce the Spenza’s and support your
recommendation by in-depth analysis in Excel. In your report, explain
the results of each portion of your analysis (represented by the tabs on
the Excel template). Submit all the completed Excel worksheets with
the completed responses to the questions posed to support your report
and recommendation. Provide a one-page Executive Summary
summarizing the results of your analysis and recommendation.
Steps to Completion:
Capital Investment Data
To assess the suitability of the project you begin by listing the various
cash flows. A consultant has been paid $50,000 to do a market
survey. She reports back that Zeta can sell 7,000 Spenza’s for
$80,000 each in years 1 and 2, and 4,000 Spenza’s for $80,000 each
in years 3 and 4. The consultant also estimates that the increased
sales of the Spenza will cannibalize the sale of an existing model, the