Calculate the Net Present Value for the following proposed international project. Assume a 20 year planning horizon and a discount rate of 6%. Langford Inc, an English mining company is considering opening a new palladium mine in northern New Mexico. The projected numbers are listed below. Enter the values into an Excel spreadsheet to calculate the cumulative new present value

			Year 0	Year 1	Year 2	Year 3	Year 4- 19	Year 20
1	Demand				60,000	70,000	100,000	100,000
2	Price per unit				$300	$400	$650	$700
3	Total revenue	=(1)x(2)
4	Variable cost per unit				$400	$400	$375	$350
5	Total variable cost	=(1)x(4)
6	Annual lease expense		$5,000,000	$5,000,000	$5,000,000	$5,000,000	$5,000,000	$5,000,000
7	Other fixed annual expenses				$1,000,000	$1,000,000	$1,000,000	$1,000,000
8	Noncash expense (depreciation)			$2,000,000	$2,000,000	$2,000,000	$2,000,000	$2,000,000
9	Total expenses	=(5)+(6)+(7)+(8)
10	Before-tax earnings of subsidiary	=(3)-(9)
11	Host government tax (25%)
12	After-tax earnings of subsidiary	=(10)-(11)
13	Net cash flow to subsidiary	=(12)+(8)
14	$ remitted by subsidiary	100% of net cash flow
15	Withholding tax on remitted funds	(10%)
16	$ remitted after withholding taxes	=(14)-(15)
17	Salvage value							$12,000,000
18	Exchange rate $/	(expected value based on table below)
19	Cash Flows to Parent	=[(16)+(17)]x(18)
20	PV of parent cash flows	(6% discount rate)
21	Initial Investment by Parent		$10,000,000	$100,000,000
22	Cumulative NPV

Exchange Rate Projections $/
Probability	Year 0	Year1	Year 2-19	Year 20
5%	0.50	0.51	0.25	0.05
10%	0.50	0.49	0.48	0.40
30%	0.50	0.52	0.48	0.50
40%	0.50	0.50	0.50	0.50
15%	0.50	0.75	0.80	1.00