Question
In a two-partner International Joint Venture, partner As threat point (NP VA) is 168, partner Bs threat point (NP VB) is 0. In this Joint
In a two-partner International Joint Venture, partner As threat point (NP VA) is 168, partner Bs threat point (NP VB) is 0. In this Joint Venture, partner B does not have the technology to produce, but partner A lacks a distribution network. There are different tax rates in the partners home countries, leading to different NPVs for the Joint Venture as a whole, depending on which partner is assumed to hold it. If partner A held the full JV, its NPV (NP VJV,A) would be 420. Because taxes are lower in partner Bs home country, the NPV of the IJV if fully held by partner B (NP VJV,B) would be 491. What is partner As share () in the Joint Venture under the 50-50 rule if initial investments are equal? =
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