0 1 2 4 5 100,000 100.00 CHF 110,000 105.00 120,000 108.00 CHF 125,000 112.00 CHF 132,000 115.00 CHF CHF CHF 55.00 CHF 58.00 CHF 62.00 CHF 65.00 CHF 67.00 CHF CHF CHF 5,500,000.00 500,000.00 750,000.00 250,000.00 Other information The initial cash outlay for this investment is $11,000,000. Annual lease expense is expected to increase 5% per year Other fixed expenses is expected to increase 3% per year. Depreciation increases by CHF 120,000 every year. Host government tax is 25%. Withholding tax on remitted funds is 20%. Salvage value is expected to be CHF 1,000,000. Discount rate for the parent's company is 13%. CHF Demand Price per unit Total Revenue Variable cost per unit Total variable cost Annual lease expense Other fixed annual expenses Noncash expense (depreciation) Total expense Before-tax earnings Host government tax After-tax earnings Net cash flow Remitted by subsidiary (100% of net cash flow) Withholding tax on remitted funds Remitted after withhlding tax Salvage value Exchange rate cash flow to parent Present Value of parent cash flow Initial Investment by parent Cummulative NPV $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 11,000,000 0 1 2 4 5 100,000 100.00 CHF 110,000 105.00 120,000 108.00 CHF 125,000 112.00 CHF 132,000 115.00 CHF CHF CHF 55.00 CHF 58.00 CHF 62.00 CHF 65.00 CHF 67.00 CHF CHF CHF 5,500,000.00 500,000.00 750,000.00 250,000.00 Other information The initial cash outlay for this investment is $11,000,000. Annual lease expense is expected to increase 5% per year Other fixed expenses is expected to increase 3% per year. Depreciation increases by CHF 120,000 every year. Host government tax is 25%. Withholding tax on remitted funds is 20%. Salvage value is expected to be CHF 1,000,000. Discount rate for the parent's company is 13%. CHF Demand Price per unit Total Revenue Variable cost per unit Total variable cost Annual lease expense Other fixed annual expenses Noncash expense (depreciation) Total expense Before-tax earnings Host government tax After-tax earnings Net cash flow Remitted by subsidiary (100% of net cash flow) Withholding tax on remitted funds Remitted after withhlding tax Salvage value Exchange rate cash flow to parent Present Value of parent cash flow Initial Investment by parent Cummulative NPV $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 11,000,000