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Fill out everything pls Natural Mosaic Company (U.S.) is considering investing INR 50,000,000 in India to create a wholly owned tile manufacturing plant to export

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Natural Mosaic Company (U.S.) is considering investing INR 50,000,000 in India to create a wholly owned tile manufacturing plant to export to the European market. After five years the subsidiary would be sold to Indian investors for INR 100,000,000. A pro forma income statement for the Indian operation predicts the generation of INR 7,000,000 of annual cash flow, is listed below. The initial investment will be made on December 31, 2021, and cash flows will occur on December 31 st of each succeeding year. Annual cash dividends to Natural Mosaic Composite from India will equal 75% of accounting income. The U.S. corporate tax rate is 21% and the Indian corporate tax rate is 50%. Because the Indian tax rate is greater than the U.S. tax rate, annual dividends paid to Natural Mosaic will not be subject to additional taxes in the United States. There are no capital gains taxes on the final sale. Natural Mosaic uses a weighted average cost of capital of 14% on domestic investments, but will add 6 percentage points for the Indian investment because of perceived greater risk. Natural Mosaic forecasts the Indian rupee to U.S. dollar exchange rate for December 31 st on the next six years are listed below. What is the net present value and internal rate of return on this investment? Pro forma income and cash flow (December 31st) Sales revenue Less cash operating expenses Gross income Less depreciation expenses Earnings before interest and taxes Less Indian taxes Net income Add back depreciation Annual cash flow Initial investment (50,000,000) Terminal value, sales Cash flows for discounting Present value factor Present value of cash flow 20% (50,000,000) NPV of India investment (project view) IRR of Indian investment (project view) Cash inflows \& outflows to US Initial investment (INR) 2021(INR50,000,000) Dividends received in the US (INR) INR 4,500,000 INR 0 (INR 50,000,000) INR4,500,000 INR 0 INR 76 INR 80 INR 84 INR 88 INR 92 INR 96 Net cash flows to parent after-tax (USD) Present value factor 20% 1.0000 0.8333 Present value of cash flow NPV of cash flows (parent viewpoint) IRR of cash flows (parent viewpoint) Natural Mosaic Company (U.S.) is considering investing INR 50,000,000 in India to create a wholly owned tile manufacturing plant to export to the European market. After five years the subsidiary would be sold to Indian investors for INR 100,000,000. A pro forma income statement for the Indian operation predicts the generation of INR 7,000,000 of annual cash flow, is listed below. The initial investment will be made on December 31, 2021, and cash flows will occur on December 31 st of each succeeding year. Annual cash dividends to Natural Mosaic Composite from India will equal 75% of accounting income. The U.S. corporate tax rate is 21% and the Indian corporate tax rate is 50%. Because the Indian tax rate is greater than the U.S. tax rate, annual dividends paid to Natural Mosaic will not be subject to additional taxes in the United States. There are no capital gains taxes on the final sale. Natural Mosaic uses a weighted average cost of capital of 14% on domestic investments, but will add 6 percentage points for the Indian investment because of perceived greater risk. Natural Mosaic forecasts the Indian rupee to U.S. dollar exchange rate for December 31 st on the next six years are listed below. What is the net present value and internal rate of return on this investment? Pro forma income and cash flow (December 31st) Sales revenue Less cash operating expenses Gross income Less depreciation expenses Earnings before interest and taxes Less Indian taxes Net income Add back depreciation Annual cash flow Initial investment (50,000,000) Terminal value, sales Cash flows for discounting Present value factor Present value of cash flow 20% (50,000,000) NPV of India investment (project view) IRR of Indian investment (project view) Cash inflows \& outflows to US Initial investment (INR) 2021(INR50,000,000) Dividends received in the US (INR) INR 4,500,000 INR 0 (INR 50,000,000) INR4,500,000 INR 0 INR 76 INR 80 INR 84 INR 88 INR 92 INR 96 Net cash flows to parent after-tax (USD) Present value factor 20% 1.0000 0.8333 Present value of cash flow NPV of cash flows (parent viewpoint) IRR of cash flows (parent viewpoint)

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