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ADANI INSTITUTE OF INFRASTRUCTURE MANAGMENT

AJC Assignment
Submitted to

Pramod Yadav
2/3/2013

Submitted by; Group-1

27 1642. helpful in raising debt NTT For confirming landing station at Japan Good credit rating of AA+.27 1610.13 21.205.96 973.32 Downside Case Free Cash Flow -455. below is the criteria for Project finance companies.00 17.13 21. How many additional sponsors will you choose to manage the hold up problems in AJC case? What will be the criteria for selecting these companies? and what companies will you select? Ans 1 Additional sponsors required = [1] Reasons [2] 2 AT&T For confirming landing station at Guam Good credit rating of AA.15 1645.helpful in raising debt Q2.914. prove that AJC will suffer from large FCF generation problem Ans 2 NPV IRR Upside Case $3.252.21 71% Base case $2.45 1330.00 17.93 1654.83 62% Downside case $1.98 40.00 17.98 43.88 1118.46 1151.36 949.69 978.65 1145.06 1201.27 58% Base Case Free Cash Flow -455.Q1.82 1666. Using profitability and asset analysis.67 1224.13 21.98 51.HBS.64 B: What project board size will you recommend? How will you allocate and distribute voting rights to directors? Ans: As per "Economic motivations for project finance" .29 Upside Case Free Cash Flow -455.86 1073. Inside Directors Grey Directors Outside Directors 12% 83% 5% Current Structure of AJC Sponsors No of Directors Inside directors 1 Grey directors 10 Outside directors 1 Total 12 Equity Stake Telstra Japan Telecom Teleglobe AT&T NTT 40% 10% 10% 20% 20% No of Directors 4 1 1 2 2 .

Ans: The incentive for the managers would be the percentage share of the company performance. (As it if divided in the appraisal forms: 60% company performance and 40% personal performance) .C: (Optional problem) How will the board ensure that managers (top line executives) properly execute the strategy dictated by the board? (Think in terms of incentives given to the managers).