[CUSTOM SOLUTION] Supplemental Data Analysis

Ghida and Reem were very interested in the possibility of opening up a plant in Angola, due to the good recent sales and positive growth rate of the market. Search online for data to examine this option. You can use the data available in Wikipedia because it is based on IMF data. https://en.wikipedia.org/wiki/Economy_of_Angola1. Produce a forecast of GDP growth rate data for 2014-2020 based only on what Ghida and Reem would have known up to, and including, 2013.a. What does the forecast show? Are the forecasted results positive or negative? Describe the 95% confidence interval for these estimates.b. How accurate were the forecasts in comparison to reality?2. Repeat Q1 (a & b) focusing on the inflation rate.3. Your professor has provided an excel worksheet with estimates you could use for estimating NPV of the 3 projects.a. Check the Professor’s calculations of WACC to see if you think they are reasonable. Feel free to challenge or change these estimates in your work.b. Your professor provided some estimates of cashflows and some probability estimates (assuming a 10yr life of the project). Use the WACC (discount rate) and cashflows to estimate the NPV of each of the 3 international expansion project options.i. Feel free to change the probability estimates if you disagreeii. Feel free to change cashflows if you disagreeiii. Create your own cash flow estimates for Angola and Saudi Arabia projects based on market knowledge available in 2013 (as much as possible, just do your best)4. What does the valuation tell us about which project the company should pursue?

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