This document explores an oil investment project in Argentina. We will provide a capital management analysis using discount rate calculations that account for the project be in a foreign country. Additionally, we will explore the NPV and IRR for this project. Lastly, we will submit our recommendation.
Exxon-Mobile
The Argentina Project
Exxon-Mobile
The Argentina Project
Exxon-Mobil Mobil (XOM) is a long established major energy conglomerate. Exxon-Mobil produces, transports, and sells crude oil and natural gas throughout the world. They distribute their petroleum products and petrochemicals globally via their infrastructure; the diversity of Exxon-Mobil is demonstrated by their involvement in the generation of electrical power. Exxon-Mobil continues to search for yet untapped fields of natural resources, and engage in the development and marketing of petrochemicals and the resulting byproducts.
Exxon-Mobil is the worlds’ largest integrated oil company. Exxon-Mobil currently has 45 refineries in 25 different countries. Exxon-Mobil provides fuel to almost everything in the world. In 2005 year end, the company’s equity was just over $111 billion. Every oil company mainly uses the capital asset pricing model, also known as the CAPM to find out the cost of equity. Exxon-Mobil’s stock markets and bond markets can be at risk depending on how low they are in debt. Most investments in money will be low for large international companies but high for small companies.
Exxon-Mobil’s Balance sheet ending in December 2005 fiscal year, ended with $208,335 million total shareholders’ equity and liabilities. Exxon-Mobil’s income for fiscal year