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An German Firm Remsey is projecting an annual profit of 500 billion each year from its new plant. There is time value of money. That
An German Firm Remsey is projecting an annual profit of 500 billion each year from its new plant. There is time value of money. That is $100 today is better than $100 in 15 days. Country A permits repatriation of 50 percent of profit at the end of each year. But all the profits can be repatriated at the end of 3 years. Country B permits repatriation of 70 percent of profit at the end of each year. But all the profits can be repatriated at the end of 5 years. Using these facts, please state which country - Country A or B -- poses greater political risk. Why? Show the computations. (10 points)
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