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Nebraska Co. plans to pursue a project in Argentina that will generate revenue of 9 million Argentine pesos (AP) at the end of each of

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Nebraska Co. plans to pursue a project in Argentina that will generate revenue of 9 million Argentine pesos (AP) at the end of each of the next four yeors. It wal have to pay operating expenses of AP2 million per year. The Argentine government will charge a 30 percent tax rate on profits. All after-tax profits each year wil be remitted to the U.S. porent and no additional taxes are owed. The spot rate of the AP is presently $0.25. The AP is expected to depreciate by to percent aach year for the next four years. The salvage value of the assets will be worth AP36 milion in four years after copital gairs toves ore pad, The initial investment will require $10 milion, half of which will be in the form of equity from the U.S. parent and half of which will come from borrowed funds. Nobraska will borrow the funds in Argentine pesos. The annual interest rate on the funds borrowed is 14 percent. Annual interest (and zero prinopal) is poid on the debt at the end of each year, and the interest payments can be deducted before determining the tax owed to the Argentine government. The entire principal of the loan will be pad at the ond of year 4 , Nebracka requires a rate of return of at least 21 percent on its invested equity for this project to be worthishile. Determine the Npv of this project, Do not round intermediate calculations. Round your answer to the nearest dollar. Use a minus sign to enter a negative value, if any. \$ Should Nebraska pursue the project? Nebraska pursue the project

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