46. Using the above information and we are also given the following:

The joint probabilities for the four cases are shown below:

Scenario 1: No withholding taxes, S$400,000 salvage value = 75% 20% = 15%

Scenario 2: 10% withholding tax, S$400,000 salvage value = 25% 20% = 5%

Scenario 3: 10% withholding tax, S$300,000 salvage value = 25% 80% = 20%

Scenario 4: _______________________________________________________

What is the joint probability of Scenario 4 above?

a. 60%

b. 50%

c. 40%

d. None of the above

Year o Year 1 800,000 Year 2 800,000 S$ remitted by subsidiary Withholding tax (0%) S$ remitted after withholding tax Salvage value Exchange rate Cash flows to parent PV of parent cash flow @13% Initial investment by parent Cumulative NPV $.72 $.72 -$1,000,000 45. What is the NPV of the last scenario shown above where there is no withholding tax and salvage value is S$300,000? Fill in the blanks on the work sheet first before answering this question. Pick the closest answer. $576,000 a. b. C. d. $796,000 $129,987 None of the above