4. Branded Co. (Italy). Branded Co. (Italy) is considering investing Venezuelan bolivar VEF 20,000,000 in Ven- ezuela to build a wholly owned haute couture plant to export globally. After five years, the subsidiary, Brand Ven, would be sold to Venezuelan investors for VEF 40,000,000. A pro forma income statement for the Venezuelan operation predicts the generation of VEF 5,375,000 of annual cash flow, and is listed below. Sales revenue 15,000,000 Less cash operating expenses (7,000,000) Gross income 8,000,000 Less depreciation expenses (500,000) Earnings before interest and taxes 7,500,000