PLEASE ANSWER FAST A US MNC has invested in a project in...
80.2K
Verified Solution
Link Copied!
Question
Accounting
PLEASE ANSWER FAST
A US MNC has invested in a project in Brazil for three years. 10m Brazilian Real were to be remitted every year for this project for next 3 years. The funds cannot be remitted due to blocked funds and company will have to reinvest it at 8% locally. Withholding tax rate and discount rate are 10% each. The exchange rate will be a constant value of $0.18. Calculate the NPV of this project if parent company invested $5m initially.
$799,392
-$1,048,710
$1,837,002
-$65,857
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
