First Part)
The only risk that is introduced for the analysis is related to the exchange rate between the UK Sterling and the US Dollar. The contract is priced in USD. If the Sterling moves in the opposite direction, then naturally, this may leverage into a much greater decrease in profits since the costs of the company will not change due to being denominated in UK Sterling.
Second Part)
A non-discounted method that could be used to evaluate the contract would be the payback period. In the payback period, it is seen how much time would it take for the project to recoup its costs. The answer is typically in 2-3 years. This method is relatively simple and easy to understand. However it can only be used for short term projects. Moreover, this method ignores the time value of money which is very important for project finance. Moreover, this method also does not take into account the riskiness of the project as the discount rate is not used which normally accounts for the riskiness. Moreover, this is a relative measure of evaluating projects. It can only be used when a comparison needs to be made between two projects. Finally, this method also does not contain a benchmark, comparison to which results in a ‘yes’ or ‘no’ answer. Such benchmarks are contained in other methods such as IRR where a rate above the discount rate indicates a positive result and NPV where an outcome that is positive indicates a positive result. Such benchmarks allow easy decision making.
第一部分）
唯一的风险，介绍了分析是英国的英镑和美元之间的汇率有关的。合约是以美元定价的。如果在相反的方向移动，那么自然，英镑，这可充分利用到利润更大的下降，因为公司的成本不会因被英国英镑的变化。
第二部分）
非折现的方法，可以用来评估合同将投资回收期。在投资回收期，可以看到多少时间才能收回成本的项目。答案通常是在2-3年内。此方法是比较简单和容易理解的。但是它只能用于短期项目。此外，该方法忽略了项目融资的资金的时间价值是非常重要的。此外，这种方法也不考虑项目风险的折现率是不使用通常占风险。此外，这是一个相对的措施项目评估。它只能在两个项目之间的比较需要用。最后，这种方法也不包含一个基准，比较的结果在一个“是”或“否”的答案。这样的基准是包含在其他方法如内部收益率在以上的贴现率率表明一个积极的结果，净现值，结果是积极的表示一个积极的结果。这样的基准让决策容易。
