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NSA Inc., a U . S . firm, is considering an investment project in England. The current exchange rate is $ 1 . 2 =
NSA Inc., a US firm, is considering an investment project in England. The current exchange rate is $ The firm assumes that the exchange rate will remain the same for the next years. Based on the agreement with the UK government, the firm will be able to remit of the cash flows generated from the project, but the government will levy a withholding tax on the remittance. The monetary amounts in the following tables are denominated in the pound. What is the NPV in the US dollar of the project?
tableEquipment economic life yearWACC for the project,Nominal growth rate,Foreign tax rate TInitial investment in NWCCost of equipment,Cost of factory building,Salvage value, equipment,Salvage value, factory building,Revenue year Fixed cost year Variable cost of revenueAnnual depreciation,
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