Problem 18-5 (algorithmic) Question Help Doohicky Devices. Doohickey Devices, Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted to other companies, but for reasons of quality control Doohicky has decided to manufacture the components itself in Asia. Analysis has narrowed the choice to two possibilities, Penang, Malaysia, and Manila, the Philippines. At the moment only the summary of expected, after-tax, cash flows displayed in the popup table, is available. Although most operating outflows would be in Malaysian ringgit or Philippine pesos, some additional U.S. dollar cash outflows would be necessary, as shown in the above popup table. The Malaysia ringgit currently trades at RM3.8637/8 and the Philippine peso trades at Ps51.77/3. Doohicky expects the Malaysian ringgit to appreciate 2.0% per year against the dollar, and the Philippine peso to depreciate 5.0% per year against the dollar. If the weighted average cost of capital for Doohicky Devices is 15.5%, which project looks more promising? Calculate the net dollar cash flows from the operations in Penang, Malysis for years 2012 through 2014 below: (Round the exchange rate to four decimal places and the dollar amount to the nearest cent) Doohicky in Penang (After-tax) 2012 2013 2014 Net cash flows (ringgit) RM (28,000) RM 8,000 RM 6.900 3.8637 Expected exchange rate (ringgits) Ispot! (1 +0.021 Cash flows (5) Cash outflows ($) Not total cash flows ($) (14000) (120.00) Enter any number in the edit fields and then click Check Answer parts remaining Clear All Check Answer Question Help Problem 18-5 (algorithmic) Doohicky Devices. Doohickey Devices, Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted to other companies, but for reasons of quality control Dochicky has decided to manufacture the components itself in Asia. Analysis has narrowed the choice to two powibilities, Penang, Malaysia, and Manila, the Philippines. At the moment only the summary of expected, after-tax cash flow displayed in the popup table is available. Although most operating outflows would be in Malaysian ringgitor Philippine pesos, some additional U.S. dollar cash outflows would be necessary, as shown in the above popup table The Malaysia inggih currently trades at RM3.8637/$ and the Philippine peso trades at Ps51.77/5 Doohicky expects the Malaysian ringgit to appreciate 2.0% per year against the dollar, and the Philippine peso to depreciate 5.0% per you against the dollar of the weighted average cost of capital for Doohicky Devices is 15.5%, which project looks more promising? Calculate the net dollar cash flows from the operations in Penang, Malysis for years 2012 through 2014 below (Round the exchange rate to four decimal places and the dollar amount to the nearest cent.) 2013 Doohicky in Penang (After-tax) Net cash flows (ringit 2012 (28.000) RM 2014 6.900 RM 8.00) RM 1 Data Table Expected excha Ispot (1.0.0 Cash flows (5) Cash outflow Net total cash 2012 (28,000) 2013 8.000 (140) 2014 6.900 (120) 2015 7,200 (130) 2016 9.400 (140) 2017 9.000 Doohicky in Penang (after-tax) Net ringgit cash flows Dollar cash outfiows Doohicky in Manila (after-tax) Net peso cash flows Dollar cash outflows (580,000) 190.000 190,000 (80) 180,000 (180) 200.000 200.000 (380) (280) Print Done Enter any number parts Clear All Check Answer Problem 18-5 (algorithmic) Question Help Doohicky Devices. Doohickey Devices, Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted to other companies, but for reasons of quality control Doohicky has decided to manufacture the components itself in Asia. Analysis has narrowed the choice to two possibilities, Penang, Malaysia, and Manila, the Philippines. At the moment only the summary of expected, after-tax, cash flows displayed in the popup table, is available. Although most operating outflows would be in Malaysian ringgit or Philippine pesos, some additional U.S. dollar cash outflows would be necessary, as shown in the above popup table. The Malaysia ringgit currently trades at RM3.8637/8 and the Philippine peso trades at Ps51.77/3. Doohicky expects the Malaysian ringgit to appreciate 2.0% per year against the dollar, and the Philippine peso to depreciate 5.0% per year against the dollar. If the weighted average cost of capital for Doohicky Devices is 15.5%, which project looks more promising? Calculate the net dollar cash flows from the operations in Penang, Malysis for years 2012 through 2014 below: (Round the exchange rate to four decimal places and the dollar amount to the nearest cent) Doohicky in Penang (After-tax) 2012 2013 2014 Net cash flows (ringgit) RM (28,000) RM 8,000 RM 6.900 3.8637 Expected exchange rate (ringgits) Ispot! (1 +0.021 Cash flows (5) Cash outflows ($) Not total cash flows ($) (14000) (120.00) Enter any number in the edit fields and then click Check Answer parts remaining Clear All Check Answer Question Help Problem 18-5 (algorithmic) Doohicky Devices. Doohickey Devices, Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted to other companies, but for reasons of quality control Dochicky has decided to manufacture the components itself in Asia. Analysis has narrowed the choice to two powibilities, Penang, Malaysia, and Manila, the Philippines. At the moment only the summary of expected, after-tax cash flow displayed in the popup table is available. Although most operating outflows would be in Malaysian ringgitor Philippine pesos, some additional U.S. dollar cash outflows would be necessary, as shown in the above popup table The Malaysia inggih currently trades at RM3.8637/$ and the Philippine peso trades at Ps51.77/5 Doohicky expects the Malaysian ringgit to appreciate 2.0% per year against the dollar, and the Philippine peso to depreciate 5.0% per you against the dollar of the weighted average cost of capital for Doohicky Devices is 15.5%, which project looks more promising? Calculate the net dollar cash flows from the operations in Penang, Malysis for years 2012 through 2014 below (Round the exchange rate to four decimal places and the dollar amount to the nearest cent.) 2013 Doohicky in Penang (After-tax) Net cash flows (ringit 2012 (28.000) RM 2014 6.900 RM 8.00) RM 1 Data Table Expected excha Ispot (1.0.0 Cash flows (5) Cash outflow Net total cash 2012 (28,000) 2013 8.000 (140) 2014 6.900 (120) 2015 7,200 (130) 2016 9.400 (140) 2017 9.000 Doohicky in Penang (after-tax) Net ringgit cash flows Dollar cash outfiows Doohicky in Manila (after-tax) Net peso cash flows Dollar cash outflows (580,000) 190.000 190,000 (80) 180,000 (180) 200.000 200.000 (380) (280) Print Done Enter any number parts Clear All Check