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Calculate the net present value for a proposed boardgame factory to France with the following attributes! initial investment in dollars: $ 8m number of boardgames
Calculate the net present value for a proposed boardgame factory to France with the following attributes! initial investment in dollars: $ 8m number of boardgames projected sold: Year 1: 80,000 year 2: 100,000 year 3: 1m unit price of boardgames: year 1: Euro 20 Year 2: Euro 30 Year 3: Euro 30 variable cost per unit is Euro 10/ unit in all three years Fixed costs per year: Euro 500,000 Depreciation expense per year: Euro 200,000 Salvage value: Euro 2m Local income tax: 15% Remittance rate: 100% Withholding tax on remittances: 10% Projected exchange rate: Year 1: $1.1/Euro Year 2: $1.2 / Euro Year 3: $ 1.3 /Euro Required rate of return for the project: 20% Fill in the following information. Do not use comma separators or decimal points. Round everything to the nearest integer. Before tax earnings of subsidiary (Euro) Year 1: Year2: Year 3: Net CF to subsidiary (Euro): Year 1: Year2: Year 3: CF remitted to parent after withholding tax in Euro (without salvage value) Year 1: Year2: Year 3: CF to parent in dollars (including salvage value) Year 1: Year2: Year 3: Net present value of project in dollars
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