4 Explain how the present value of the salvage value of an Indonesian subsidiary will be affected...

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4 Explain how the present value of the salvage value of an Indonesian subsidiary will be affected (from the UK parent’s perspective) by:

(a) an increase in the risk of the foreign subsidiary, and

(b) an expectation that Indonesia’s currency (rupiah) will depreciate against the pound over time.

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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