Destiny Industries, a company based in Australia, has planned to expand its business in Thailand by investing in a new project. The following information has been gathered to assess this project: . . The initial investment required is Thai Baht (THB) 60 million. This investment outlay will be depreciated on a straight-line basis over its useful life. The project will be terminated at the end of Year 3 when the subsidiary will be sold. The Thailand government charges a corporate tax of 30% on profit. In addition, in year 3, there will be withholding tax (remittance tax) of 5% on all profit remitted by the subsidiary to the parent. All cash flows received by the subsidiary are sent to the parent at the end of each year. In three years' time, the subsidiary is to be sold for THB 25 million. Assume that this amount is not subject to any tax. Thai bath continues to depreciate by 8% each year. You will need to calculate the rates for your analysis. Destiny Industries requires a 15% per annum rate of return on this project. You have been given the following additional information: . . Year Exchange rate Product cost and revenue information Variable costs Price per unit Sales (No. of units) (THB) (THB) THB/A$ (forecast) per unit Other cash expenses (THB) 0 1 $AUD =30 THB 1 $AUD =?? THB 1 150.0 250,000 75.0 2,250,000 2 1 $AUD =?? THB 3,000,000 10% more than previous year 10% more than previous year 10% more than previous year 15% more than previous year 3 1 $AUD =?? THB 4,500,000 10% more than previous year 20% more than previous year Required: Calculate the net present value (NPV) of the project in AUD, and determine whether Destiny Industries should undertake this project. Show all relevant formulas and calculations to get full credit. Destiny Industries, a company based in Australia, has planned to expand its business in Thailand by investing in a new project. The following information has been gathered to assess this project: . . The initial investment required is Thai Baht (THB) 60 million. This investment outlay will be depreciated on a straight-line basis over its useful life. The project will be terminated at the end of Year 3 when the subsidiary will be sold. The Thailand government charges a corporate tax of 30% on profit. In addition, in year 3, there will be withholding tax (remittance tax) of 5% on all profit remitted by the subsidiary to the parent. All cash flows received by the subsidiary are sent to the parent at the end of each year. In three years' time, the subsidiary is to be sold for THB 25 million. Assume that this amount is not subject to any tax. Thai bath continues to depreciate by 8% each year. You will need to calculate the rates for your analysis. Destiny Industries requires a 15% per annum rate of return on this project. You have been given the following additional information: . . Year Exchange rate Product cost and revenue information Variable costs Price per unit Sales (No. of units) (THB) (THB) THB/A$ (forecast) per unit Other cash expenses (THB) 0 1 $AUD =30 THB 1 $AUD =?? THB 1 150.0 250,000 75.0 2,250,000 2 1 $AUD =?? THB 3,000,000 10% more than previous year 10% more than previous year 10% more than previous year 15% more than previous year 3 1 $AUD =?? THB 4,500,000 10% more than previous year 20% more than previous year Required: Calculate the net present value (NPV) of the project in AUD, and determine whether Destiny Industries should undertake this project. Show all relevant formulas and calculations to get full credit