Q1) Are the environmental conditions in Kenya, India and South Africa conducive to starting the foundation?

Which of the countries provide the best long term opportunities for the !oolani "oundation?
/1ternal %ebt ') mill() 0ife /1pectancy 'yrs( of age) .nemployment *ate ',) 0abor "orce 'mill() $%& *eal $ro+th *ate ',) /conomic Aid *ecipient ') mill() &opulation 'mill() $%& &er #apita ')-person)

$%& 'mill( ))

0iteracy ',)

South Africa Kenya

34,680 2.2 3,319,00 India 6.2 3,100 0 /1hibit 1 2 /conomic #onditions

For the best long-term opportunities for Mool ni Foun! tion, "e belie#e th t best fits the %riteri of sust in ble business %on!itions, !ue to better e&%h nge n! lo"est %osts of li#ing gi#en the '() figures. $t is lso import nt to note th t e#en though the liter %* r te is the lo"est in $n!i opportunit* gener te! b* h #ing the highest number of institutions present to p "ith.

$n or!er to m +e the %hoi%e, "e e# lu te! the f %tors liste! in the follo"ing t ble n! r n+e! the three %ountries for e %h one of them,
/1chan ge *ate #ost of living /mployme nt !icrofinan ce Institutions 0itera cy 343A 0

#ountry India Kenya South Africa

3 -igh ./est 0ountr*1 2 Me!ium ./etter 0ountr*1 1 2o" .3orst 0ountr*1

$%& and /mployment8 '() f %tors intern l %onsumption, go#ernment spen!ing .e%onomi% i!1 n! in#estments .institutions1. 4mplo*ment r te sho"s gro"th of the e%onom* n! positi#e outloo+ of l bor for%e th t "ill help in sust in ble en#ironment for ne" #entures. #ost of 0iving8 the lo"est %osts of li#ing represents lo"est %ost for Mool ni. /1change *ate8 st ble e&%h nge r tes e5u l st ble %urren%* n! lo"er long-term ris+ for Mool ni. 1

#ountry

491,400

3.5

11,10 0 1,100

26 40 9

488

44.3 33.8 1,080.2 0

16.6 11.4 482.2

27,010 6,792 117,20 0

43.27 47.99 64.35

86.4 85.1 59.5

2,900

$n!i r tes , the rtner

$%&

3 1 2

2 1 3

3 1 2

3 1 2

3 2 1

1 3 2

15 6 17

!icrofinance Institutions8 the presen%e of institutions helps Mool ni to fin! p rtners.

l rge number of mi%rofin n%e

0iteracy8 high liter %* e5u ls less %o %hing resour%e !eplo*ment but on the other h n! lo" liter %* lso pro#i!es n opportunit* to t p into ne" m r+et. $n !e#eloping e%onom* "here there re m n* institutions n! less !i#ersifi% tion, it m +es sense for institutions to p rtner "ith Mool ni to %re te !ifferenti te! # lue !!e!.

Q7) &repare cash budgets from September 1, 799:, to August ;1, 799<, for the internships in Kenya, India and South Africa(
6he lo"est li#ing %osts in the first *e r re in $n!i . 7ee submitte! 4&%el 7pre !sheet for more !et ils .sheet 89uestion2-4:1.

Q;) If the value of the #anadian %ollar +ere to decrease relative to the foreign currencies, ho+ +ould the cash flo+s be affected?
3e re using the follo"ing ssumptions, ;ll the !ministr ti#e e&penses t +e pl %e "ithin 0 n ! .;!#ertising M teri l %osts re rel te! to the lo% l stu!ents in 0 n !i n s%hools1. 0 n !i n !oll r is losing strength g inst $n!i n <upees. 6he lo n from 6( / n+ in 0 n ! is re%ei#e! in 7eptember 2007 .i.e.mone* upfront1. Mool ni tr nsfers % sh to $n!i onl* "hen nee!e! .first e&pense in ;pril 2008 for the rent1. -en%e, for Mool ni the pur%h se of goo!s "ill be%ome more e&pensi#e rel ti#e to before, !ue to the effe%ts of the e&%h nge r tes. $f the tr nsfer of % sh is e&e%ute! in 7eptember 2007, Mool ni % n s fel* %o#er the e&penses for the stu!ents in M * n! =une. -o"e#er, in this s%en rio the* "oul! lose the opportunit* to benefit of n in%re se in the po"er of the 0 n !i n !oll r.

Q=) In the second year, if four students in total +ere to ta>e the internship, ho+ do your cash budgets change, if +e assume that administrative costs remain constant?
6he lo"est li#ing %osts in the se%on! *e r re in $n!i . 7ee submitte! 4&%el 7pre !sheet for more !et ils .sheet 89uestion2-4:1.

Q5) As !oolani, +ould you proceed +ith the venture? If so, ho+

much cash +ould you re?uest from 3%? In +hich months? .se your cash budgets in your ans+er( @o+ +ould you convince 3% to provide funding?
'i#en our n l*sis on our ns"ers bo#e, it seems logi% l n! #i ble to pro%ee! "ith su%h #enture gi#en the %urrent s%en rio. 3e suggest to re5uest > 89,565 t the beginning of *e r 1 .7eptember 20071. 6he fun!ing "ill be use! to p * the li#ing %osts of the stu!ents n! to in#est in p rtnership "ith mi%rofin n%e institution in $n!i .return r te of 30?1. $n or!er to %on#in%e 6( / n+ to pro#i!e fun!ing "e "ill sho" them the positi#e @et )resent A lue of the in#estment of > 4,691. 6he !et ils % n be foun! in the submitte! 4&%el 7pre !sheet