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Free cash flows for years 0-3 PLEASEE I cant understand it Wenceslas Refining Company. Privately owned Wenceslas Refining Company is considering iwesting it the Crech

Free cash flows for years 0-3 PLEASEE
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Wenceslas Refining Company. Privately owned Wenceslas Refining Company is considering iwesting it the Crech Repiblic so as to have a refrery source closer so its Furopean customers. The An addeonal CZKS0,000,000 will be needed for working captal. For caplal budgeting purposes, Wencevlas assumes sale as a going concem at the end of the thied year al a price, after all taxes, equal to the net book value of foed assess alone (not including Wencesias uses 17% as its weighed average coet of capary, and bs ebjective is to maximize present value a. Is the invectmed attractive to Wenceslas Refining feom the project's viewpoint? b. Is the invesiment atractive to Wenceslas Refring from the parents viewpoint? a. Calculate the tree cash fow for yes of hom the project's viewpoint below. (Round to the nearest dotiac) working capital). All free cash flow will be repatriated to the United States as soon as possible. In evaluating the venture, the U.S. dollar forecasts are shown Variable manufacturing costs are expected to be 55% of sales. No additional funds need be invested in the U.S. subsidiary during the period under consider restrictions on repatriation of any funds of any sort. The Czech corporate tax rate is 26% and the United States rate is 38%. Both countries allow a tax credit Data table

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