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Please consider the following into for the next Mentworth Co. is planning a prot in France it would lease space for onena shopping mall to

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Please consider the following into for the next Mentworth Co. is planning a prot in France it would lease space for onena shopping mall to sell expensive clothes mutactured in the US. The project end in one year when all canings would be remitted to Wentworth Co. Assume that notional corporate taxes are incurred beyond the imposed by the French government. Since Wentworth or wouldnt po it word not have any long Bermassets in France, and expect the terminal value of the project to be about Assume that the projects regard rate of tum is 20 percent. Asossume that the inical outlayired by the parent to the store with clothes is $300.000. The pretax earnings we expected to the 500.000 at the end of one year. The curo expected to be worth $1 at the end of one year, when the after-tax carnis converted to dollars and rotted to the United States. The following forms of country risk, which are independent, must be considered: The French economy may weaken (probability which would cause the expected preta camins to be 400.000 The French corporate tax rate on income carned by US firms may increase from 30 percent to 40 percent (probability 30 percent Question 20 (3.33 points What is the expected NPV of the project $1165 $2.375 $16.815 58269 Question 213.33 points What is your recommendation to Wentworth Caregarding the teaty of this project based on the NPV rule Wentworth Ca should not undertake the project because the expected NPV gative Wir worth Cocould undertake the project because the expected NPVA po Question 223.33 points What the probity that the pas NPV will be negative 25.0 Das. DASAN

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