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An American Firm XYZ is projecting an annual profit of 500 billion each year from its new plant. There is time value of money. Country
An American Firm XYZ is projecting an annual profit of 500 billion each year from its new plant. There is time value of money. Country A permits repatriation of 50 percent of profit at the end of each year with no additional taxes. Country B permits repatriation of 70 percent of profit at the end of each year but there is a tax of 10 percent on the monies repatriated. Which country investment presents better opportunity? Why?
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