Items 0 4 6 1 1,500,000 130.00 2. 1,625,000 135.00 3 1,675,000 140.00 1,815,200 145.00 5 1,873,250 150.00 1,675,000 CHF 155.00 7 1,700,000 CHE 159.00 CHE CHF CHF CHF CHF 74.00 CHF 78.00 CHF 82.00 CHF 86.00 CHF 90.00 CHF 95.00 CHF 70.00 CHF CHF 105,000,000.00 CHF 10,000,000.00 CHF 50,000,000.00 CHF 25,000,000.00 1 Demand 2 Price per unit 3 Total Revenue 4 Variable cost per unit 5 Total variable cost 6 Annual lease expense 7 Other fixed annual expenses 8 Noncash expense (depreciation) 9 Total expense 10 Before-tax earnings 11 Host government tax 12 After-tax earnings 13 Net cash flow 14 Remitted by subsidiary (100% of net cash flow) 15 Withholding tax on remitted funds 16 Remitted after withhlding tax 17 Salvage value 18 Exchange rate 19 cash flow to parent 20 Present Value of parent cash flow 21 Initial Investment by parent 22 Cummulative NPV $ 1.35 $ 1.38 $ 1.32 $ 1.41 $ 1.37 1.38 1.4 $ 125,000,000 Other information Cash outlay for the investment Annual lease expense is expected to grow Other fixed annual expense is expected to grow Noncash expense (depreciation) is expected to grow Host government Tax Rate Withholding tax on remitted funds Salvage value at year 7 Discount rate $125,000,000 10% per year 5% per year CHF 2,500,000.00 per year 30% 25% CHF 1,500,000.00 15% Items 0 4 6 1 1,500,000 130.00 2. 1,625,000 135.00 3 1,675,000 140.00 1,815,200 145.00 5 1,873,250 150.00 1,675,000 CHF 155.00 7 1,700,000 CHE 159.00 CHE CHF CHF CHF CHF 74.00 CHF 78.00 CHF 82.00 CHF 86.00 CHF 90.00 CHF 95.00 CHF 70.00 CHF CHF 105,000,000.00 CHF 10,000,000.00 CHF 50,000,000.00 CHF 25,000,000.00 1 Demand 2 Price per unit 3 Total Revenue 4 Variable cost per unit 5 Total variable cost 6 Annual lease expense 7 Other fixed annual expenses 8 Noncash expense (depreciation) 9 Total expense 10 Before-tax earnings 11 Host government tax 12 After-tax earnings 13 Net cash flow 14 Remitted by subsidiary (100% of net cash flow) 15 Withholding tax on remitted funds 16 Remitted after withhlding tax 17 Salvage value 18 Exchange rate 19 cash flow to parent 20 Present Value of parent cash flow 21 Initial Investment by parent 22 Cummulative NPV $ 1.35 $ 1.38 $ 1.32 $ 1.41 $ 1.37 1.38 1.4 $ 125,000,000 Other information Cash outlay for the investment Annual lease expense is expected to grow Other fixed annual expense is expected to grow Noncash expense (depreciation) is expected to grow Host government Tax Rate Withholding tax on remitted funds Salvage value at year 7 Discount rate $125,000,000 10% per year 5% per year CHF 2,500,000.00 per year 30% 25% CHF 1,500,000.00 15%