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1. A U.S. company is considering an investment project proposal to expand its operations in Germany. As part of the proposed project, the German operation

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1. A U.S. company is considering an investment project proposal to expand its operations in Germany. As part of the proposed project, the German operation is required to pay an annual royalty of 500,000 to the parent company. Required: Explain the cash flow implications of the 500,000 payment for the parent company

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