Hermosa Components: Revenue Growth and Sales Price Scenario. In addition to the assumptions employed in Problem 18.8 , Hermosa now wishes to evaluate the prospect of being able to sell the Argentine subsidiary at the end of year 5 at a multiple of the business’s earnings in that year. Hermosa believes that a multiple of 6 is a conservative estimate of the market value of the firm at that time. Evaluate the project and parent viewpoint capital budgets.