Suppose expected dividends from GLOBAL’s Anderian subsidiary are A5 million per year (unadjusted for inflation) during the next 10 years. GLOBAL’s real discount rate for these dividends is 15%. Suppose the company decides to forgo any dividend income from Anderia for one year and reinvest the funds in promising commercial projects in that country. The company expected an after-tax 15% real rate of return on these additional investments in Anderia. If the company continues to reinvest the income from the investment for five years and subsequently uses all the principal and income from the investments to increase the dividend in Year 6, what will be the dividend in that year?

Show the effect of the forgone dividend on the PV of the Anderian dividend stream.