Firm DFG plans to open a forelgn subsldlary through whlch to sell Its manufactured goods In the European market It must declde between locating the subsldlary In Country X or Country Z. If the subeldlary operates In Country X, Its gross recelpts from sales will be subject to a 3 percent gross receipts tax lf the subGIdiary operates in Country Z, lts net profits will be subject to a 42 percent income tax. However Country Z's tax law has a special provislon to attract forelgn Investors: No forelgn subsldlary is subject to the Income tax for the first three years of operations. DFG projects the following annual operating results for the two locations (in thousands of dollars). Use Appendix A and Appendix B. Country Z $110,eee Country X $110 , Gross receipts from sales Cost of sales (68,88) (68,808) (22,888 (15,898) $ 28,800 35,880 Operating expenses Net profit DFG projects that It will operate the forelgn subsldlary for 10 years years 0 through 9) and that the terminal value of the operation at the end of this perlod wll be the same regardless of location. Assume a 5 percent discount rate. a. Determine the NPV of Country X b. Determine the NPV of Country Z C. Whlch location maximizes the NPV of the forelgn operation. Complete this question by entering your answers in the tabs below. Required Required B Required C Determine the NPV of Country X. (Round discount factors to 3 decimal places, and intermediate calculations to the nearest whole number. Compute your intermediate values and final answers in thousands of dollars.)