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Boomerang (an MNC) is considering establishing a two-year project in New Zealand with a $30 million initial investment. The required rate of return on this

  1. Boomerang (an MNC) is considering establishing a two-year project in New Zealand with a $30 million initial investment. The required rate of return on this project is 16 percent. The project is expected to generate operating cash flows of $20,850,000, measured in today's dollars.

    What is the break-even salvage value

  2. What is Boomerangs break-even value salvage value in NZ$ if the exchange rate is $0.60 per NZ$?

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