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Please to provide a solution. Thank you. Global Strategy. Senser Co.established a subsidiary in Russia two years ago Under its orginal plans, Senser intended to

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Please to provide a solution. Thank you.

Global Strategy. Senser Co.established a subsidiary in Russia two years ago Under its orginal plans, Senser intended to operate the subsidiary for a total of four years. However, it would like to reassess the situation, since exchange rate forecasts for the Russian ruble indicate that it may depreciate from its current level of$.033 to $.028 next year and to $.025 in the following year. Senser could sell the subsidiary today for 5 million rubles to a potential acquirer. If Senser continues to operate the subsidiary, it will generate cash flows of 3 million rubles next year and 4 million rubles in the following year. These cash flows would be remitted backto the parent in the U.S. The required rate of retum of the project is 16 percent. Should Senser continue operating the Russian subsidiary

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