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Explain how the present value of salvage value of an Indonesian subsidiary will be affected (from the U.S. parents perspective) by an increase in the

Explain how the present value of salvage value of an Indonesian subsidiary will be affected (from the U.S. parents perspective) by

  1. an increase in the risk of the foreign subsidiary and
  2. an expectation that Indonesias currency (rupiah) will depreciate against the dollar over time.

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