Doshicky Devices. Doohickey Devices, Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted to other companies, but for reasons of quality control Dashicky has decided to manufacture the components itself in Asia Analysis has narowed the choice to two possibles. Penang, Malaysia, and Manila, the Philippines. At the moment only the summary of expected, after-tax cash flows displayed in the popup table able Athough most operating outflows would be in Malaysian ringgit or Philippine pesos, some additional US dollar cash outows would be necessary, as shown in the above potable The Malaysia incumenty trades at 3.87018 and the Philippine peso trades at P5148/5. Doohicky expects the Malaysian ringgit to appreciate 1.9% per year against the dollar, and the Philippine peso to depreciate 4.9% per year against the dollar. If the weighted average cost of capital for Doonicky Devices is 13.0%, which project looks more promising? Calculate the netdollar cash flows from the operations in Penang, Malysis for years 2012 through 2014 below. (Round the exchange rate to four decimal places and the dollar amount to the c Dochicky in Penang (After-tax) 2013 Netcash flows(ing) Expected exchange rate) (100 Cash flow) Cashow (1) Net total cash flows (3) Data table 2012 RM (28.000) RM $ 38701 1 Doohicky in Penang (after-tax) Net ringgit cash flows Dollar cash outflows Doohicky in Manila (after-tax) Net peso cash flows Dollar cash outflows 8.000 RM (13000) 1 1,000 (11000) 2012 (28,000) 2013 2014 8,000 7,000 (130) (110) Print 2015 2016 7,400 9,200 (170) (170) (580,000) 170,000 180,000 220,000 190,000 210,000 (210) (310) (410) (110) Done 2017 8,000 X Doshicky Devices. Doohickey Devices, Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted to other companies, but for reasons of quality control Dashicky has decided to manufacture the components itself in Asia Analysis has narowed the choice to two possibles. Penang, Malaysia, and Manila, the Philippines. At the moment only the summary of expected, after-tax cash flows displayed in the popup table able Athough most operating outflows would be in Malaysian ringgit or Philippine pesos, some additional US dollar cash outows would be necessary, as shown in the above potable The Malaysia incumenty trades at 3.87018 and the Philippine peso trades at P5148/5. Doohicky expects the Malaysian ringgit to appreciate 1.9% per year against the dollar, and the Philippine peso to depreciate 4.9% per year against the dollar. If the weighted average cost of capital for Doonicky Devices is 13.0%, which project looks more promising? Calculate the netdollar cash flows from the operations in Penang, Malysis for years 2012 through 2014 below. (Round the exchange rate to four decimal places and the dollar amount to the c Dochicky in Penang (After-tax) 2013 Netcash flows(ing) Expected exchange rate) (100 Cash flow) Cashow (1) Net total cash flows (3) Data table 2012 RM (28.000) RM $ 38701 1 Doohicky in Penang (after-tax) Net ringgit cash flows Dollar cash outflows Doohicky in Manila (after-tax) Net peso cash flows Dollar cash outflows 8.000 RM (13000) 1 1,000 (11000) 2012 (28,000) 2013 2014 8,000 7,000 (130) (110) Print 2015 2016 7,400 9,200 (170) (170) (580,000) 170,000 180,000 220,000 190,000 210,000 (210) (310) (410) (110) Done 2017 8,000 X
