I was a part of a group project, to structure a MNC, to ensure a distribution, marketing, financing and exit strategy. For this purpose we did a cost benefit analysis using NPV analysis. We forecasted exchange rate trend between Israel and the US. We arranged financing and devised ways to hedge against the exchange rate fluctuations.

1. Field of Dreams Wheat, Inc. Norma Cisneros Pradnya Deshpande Stephanie Coco Maggie Counts Salima Dhamani

2. Introduction Why wheat? Why Israel? Why North Dakota? Ease of doing business with

3. Stage I Export wheat to Israel Staple ingredient Domestic supply insufficient 3rd in region for World Bank’s Ease of Doing Business Index and World Economic Forum’s Global Competitiveness Report Export from fields in North Dakota Temperate climate High yielding soil Easy transport

4. Competition Black Sea Producers Russia Ukraine Disadvantages Production costs Freight costs Advantages Quality and uniformity Storage and transportation Social issues Well-established trade relationship

5. Payment Prepayment First three transactions, and Cumulative payment of 2,000,000 ILS Relations for 6 months Letter of credit Open Accounts

6. Subsidiary Ashdod, Israel Largest shipping port Milling and packaging Acquisition

7. Currency Shekel to USD- 3 months

8. Currency Shekel to USD- 1 month

9. Currency Shekel to USD-1 Year

10. Currency Five Year Exchange Rate Forecast

11. Currency R2 = 0.88625 Inputs: Real GDP Consumer Price Index Lending Interest Rate

12. Hedging Currently unnecessary Options Futures

13. Weighted Average Cost of Capital

14. NPV Analysis

15. NPV Analysis

16. Country Risk Economic Factors Economic Crisis Undercut Prices by Black Sea Competitors Political Factors Cultural Conflicts Foreign Intervention Competitive Factors Stybel Flour Mills Family Mills

17. Exit Strategy Salvage value = 2,500,000 ILS Sell as a whole or in parts

18. Exchange Rate Exposure Transaction Economic Translation

20. Exchange Rate Exposure Transaction Economic Translation

21. Conclusion NPV = $6,282,935.82 Benefits outweigh costs Competitive advantage attainable

22. Questions