Southport Minerals, Inc. is the largest sulphur producer in the United States. Due to a shortening of supply over the past few years Southport has enjoyed enormous profits and is extremely liquid with a debt/equity ratio of .02. Currently sulphur production accounts for 90% of Southport’s revenue. The company is searching for non-acquisition diversification opportunities. Southport has been presented with the opportunity to develop a copper mine in Indonesia. Increased uses of copper and rising …showed first 75 words of 341 total…

…showed last 75 words of 341 total…that Southport can guarantee the board will help sell the position. In order to avoid potential distortions caused by foreign currency conversion, Southport should conduct the entire cash flow forecasting in the Indonesian currency. Also, Southport must consider the cross-country tax rate associated with Indonesia. Once the cash flow analysis is done in the foreign currency the income transferred back to the United States will have a different tax rate than the domestic rate of 34%.