Question 25 please

Remaining Time: 46 minutes, 09 seconds. Question Completion Status: Adjusting the discount rate upward. Adjusting the input variables to estimate the sensitivity of the project's NPV. QUESTION 25 An MNC is considering establishing a two-year project in Singapore dollar with a $25 million initial investment. The firm's cost of capital is 12 percent. The required rate of return on this project is 18 percent. The project is expected to generate cash flows of SS12 million in Year 1 and SS30 million in Year 2. excluding the salvage value. Assume no taxes and a stable exchange rate of $.60 per SSI over the next two years. All cash flows are remitted to the parent. What is the break-even salvage value? about SS11 million about S$15 million about S$9 million about S$14 million about S$5 million QUESTION 26 If an MNC exports to a country and then establishes a subsidiary to produce and sell the same product in that country, cash flows from existing operations would likely be affected by the project. If an MNC establishes a foreign manufacturing subsidiary that buys components from the parent, the cash flows from existing operations would likely be affected by the project