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final.xlsx-Suppose a multinational corporation's Australian subsidiary submits a project with the following details. Project life=3 years CF-A$4 million Product's unit price: A$50 (year 1), A$45

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final.xlsx-Suppose a multinational corporation's Australian subsidiary submits a project with the following details. Project life=3 years CF-A$4 million Product's unit price: A$50 (year 1), A$45 (2), A$40 (3) Quantity demanded: 70,000 (year 1), 75,000 (2), 80,000 (3) Fixed cost-A$800,000/year Variable cost=A$7/unit Depreciation=15% of the initial outlay CF. Taxes=25% by Australia, 35% by the United States (capital export neutrality taxation) . Withholding tax=10% Exchange rate: $0.70/A$(year 1). $0.71/A$ (2). $0.72/A$ (2). $0.73/A$ (3) Required rate of return=10% What is the approximate evaluation of the project for this corporation? O O $424,000 O $614,000 O $318,000 $204,000

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