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A US companys furniture factory is located in a country with high political risk. The company does not export but sells the products locally. The
A US companys furniture factory is located in a country with high political risk. The company does not export but sells the products locally. The local population does not buy very much of the companys products. Therefore, the companys valuation is low. How do the numerator and the denominator of the Present Value formula for any given year in an NPV model reflect the low valuation of the company? must discuss the numerator, and must discuss the denominator.
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