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Izzy Inc., a U.S.-based MNC, has screened several targets. Based on economic and political considerations, only one eligible target remains in Malaysia. Izzy would like

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Izzy Inc., a U.S.-based MNC, has screened several targets. Based on economic and political considerations, only one eligible target remains in Malaysia. Izzy would like you to value this target and has provided you with the following information: Izzy expects to keep the target for three years, at which time it expects to sel the firm for 500 million Malaysian ringgit (MYR) after deducting the amount for any taxes paid. . Izzy expects a strong Malaysian economy. Consequently, the estimates for revenues for the next year are MYR300 million. Revenues are expected to increase by 11% over the following two years. Cost of goods sold are expected to be 50% of revenues. Selling and administrative expenses are expected to be MYR40 million in each The Malaysian tax rate on the target's earnings is expected to be 32%. . Depreciation expenses are expected to be MYR15 million per year for each of the next three years. The target will need MYR9 million in cash each year to support existing operations. The target's current stock price is MYR40 per share. The target has 9,100,000 million shares outstanding. Any cash flows remaining after taxes are remitted by the target to Izzy, Inc. Izzy uses the prevailing exchange rate of the Malaysian ringgit as the expected exchange rate for the next three years. This exchange rate is The target's current stock price is MYR40 per share. The target has 9,100,000 million shares outstanding. . Any cash flows remaining after taxes are remitted by the target to Izzy, Inc. Izzy uses the prevailing exchange rate of the Malaysian ringgit as the expected exchange rate for the next three years. This exchange rate is currently $0.20 . Izzy's required rate of return on similar projects is 13%. The Malaysian target's value based on its stock price is $

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