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Accenture AS is considering the establishument of a subsidiary in Norway. The initial iwestment requined by the parent is USD0,000.000. If the project is undertalien,
Accenture AS is considering the establishument of a subsidiary in Norway. The initial iwestment requined by the parent is USD0,000.000. If the project is undertalien, Accenture AS would tesminate the project aller six years. Accienture A5is cost of capial is 13 percent, and the project has the same risk as Accenture A5's exisling projects. All cash flows generated from the project will be remitied to the parent at the end of each year. The current exchange rate of the Norwegian Kroner (NOK) is NOK9. 1550/USD. Listed below are the estimated cash flows the Norwegian subsidiary and Accenture AS's exchange rate forecasts for the Norwegian Kroner over the project's lifetime: BBF308/03 INTERNATIONAL FINANCIAL MANAGEMENT ASSIGNMENT 2 SEPT 2022 Accenture AS is also uncertain regarding the cost of capital. Recently, Norway has experienced some political turmoil. Calculate the net present value (NPV) of this project if a 15 percent cost of capital is used instead of 13 percent. (25 marks)
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