Hello,

If you could please help me answer Question 3 Question 4 part a, that would be much appreciated. The homework assignment is due within the next hour, so your help would be a life-saver. No additional information other than what is provided below was given. Thank you in advance, and I promise to give a great review!

3. 20 Points. PepsiCo. Although the actual sales and expenses of the JV were as forecasted in RMB, PepsiCo actually overestimated the RMB/S exchange rates. Calculate the change in the NPV to a) the Joint Venture, b) Pepsico and c) the PRC partners, if the RMB/S exchange rate in 2006 is 12.0 instead of the rate for 2006 shown in Exhibit 6. Assume that the exchange rates for 1998 -2005 in Exhibit 6 are accurate. Maintain all of the other original assumptions. Note: Show only the numbers for 2006 and the resulting impact on the NPV to the JV, PepsiCo and the PRC Partners. Avoid a penalty: Do not report cash flows or present values for any of the other years. 4. Special questions. 30 points. 10 points. PepsiCo and the two PRC firms formed a joint venture (UV) as described in the PepsiCo Case. You are the CFO of that JV. Based upon our analysis, what is the required rate of return for the PepsiCo Changchun Joint Venture? Explain in no more than 50 words. a. 3. 20 Points. PepsiCo. Although the actual sales and expenses of the JV were as forecasted in RMB, PepsiCo actually overestimated the RMB/S exchange rates. Calculate the change in the NPV to a) the Joint Venture, b) Pepsico and c) the PRC partners, if the RMB/S exchange rate in 2006 is 12.0 instead of the rate for 2006 shown in Exhibit 6. Assume that the exchange rates for 1998 -2005 in Exhibit 6 are accurate. Maintain all of the other original assumptions. Note: Show only the numbers for 2006 and the resulting impact on the NPV to the JV, PepsiCo and the PRC Partners. Avoid a penalty: Do not report cash flows or present values for any of the other years. 4. Special questions. 30 points. 10 points. PepsiCo and the two PRC firms formed a joint venture (UV) as described in the PepsiCo Case. You are the CFO of that JV. Based upon our analysis, what is the required rate of return for the PepsiCo Changchun Joint Venture? Explain in no more than 50 words. a