Schism Systems. Schism Systems Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted to other companies, but for reasons of quality control Schism has decided to manufacture 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 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 (expenses) would be necessary, also shown in the table. The Malaysia ringgit currently trades at MYR4.16 = USD1.00 and the Philippine peso trades at PHP50.65 = USD1.00. Schism expects the Malaysian ringgit to appreciate 1.9% per year against the dollar, and the Philippine peso to depreciate 5.0% per year against the dollar. If the heighted average cost of capital for Schism Systems is 15.0%, which project looks most promising on the basis of present value? Calculate the net dollar cash flows from the operations in Penang, Malysia for years 2022 through 2024 below: (Round the exchange rate to four decimal places and the dollar amount to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Schism Systems. Schism Systems Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted to other companies, but for reasons of quality control Schism has decided to manufacture 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 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 (expenses) would be necessary, also shown in the table. The Malaysia ringgit currently trades at MYR4.16 = USD1.00 and the Philippine peso trades at PHP50.65 = USD1.00. Schism expects the Malaysian ringgit to appreciate 1.9% per year against the dollar, and the Philippine peso to depreciate 5.0% per year against the dollar. If the heighted average cost of capital for Schism Systems is 15.0%, which project looks most promising on the basis of present value? Calculate the net dollar cash flows from the operations in Penang, Malysia for years 2022 through 2024 below: (Round the exchange rate to four decimal places and the dollar amount to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.)
