Question
giving the following information of Cross Border Investment in Brazil's case, can we calculate NPV w/ both parent and project perspectives? and how? Loan Rates
giving the following information of Cross Border Investment in Brazil's case, can we calculate NPV w/ both parent and project perspectives? and how?
Loan Rates Secured by the Equipment and 3P Turbos U.S. Assets | |||
German Vendor | German Bank | U.S. Bank | Brazilian Bank |
2% | 6% | 8% | 15% |
Calculation of Loan Payments Based on 2% Annual Rate | |||||
Loan Amount | R$90 million or Euro 22.5 million | ||||
Spot Exchange Rates | 4.00 R$/Euro | 3.56 R$/USD | |||
Forward Exchange Rate (in Currency Swap) | 4.20 R$/Euro | 3.74 R$/USD | |||
Vendor Loan Rate | 2% | ||||
2017 | 2018 | 2019 | 2020 | 2021 | |
Loan Payments (Euro) | 4,773,564 | 4,773,564 | 4,773,564 | 4,773,564 | 4,773,564 |
Capital Gains Tax Rate in Brazil for All Individuals and Legal Entities | |
Tax Rate | Capital Gains Amount |
15% | Up to R$1,000,000 |
20% | > R$1,000,000 and <= R$5,000,000 |
25% | > R$5,000,000 and <= R$20,000,000 |
30% | > R$20,000,000 |
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