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A Filipino nutrition distribution company obtained a Malaysian nutrition store branch for 75M-peso three years ago. At the end of a year of tenure, net
A Filipino nutrition distribution company obtained a Malaysian nutrition store branch for 75M-peso three years ago. At the end of a year of tenure, net loss equals 10M peso. With a 5M-peso annually starting year two (arithmetic gradient), net cash flow is increasing, and the pattern is likely to remain for the future. The breakeven net cash flow was attained this year. The management expects a minimum attractive rate of return of 25% per year from any sale because of the debt financing used to obtain the Malaysian branch. The Filipino company has just been offered 112 M-peso by an Australian company desiring to get a position in Malaysia. At this selling price, use (FW) Future worth analysis to determine if the minimum attractive rate of return will be realized (Final Answer in Million Peso)
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