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Suppose that Breida Co., a U.S.-based MNC, had previously acquired a target company in Singapore. The initial valuation of the target yielded a positive net
Suppose that Breida Co., a U.S.-based MNC, had previously acquired a target company in Singapore. The initial valuation of the target yielded a positive net present value of the target's cash flow. However, changes in the forecasted exchange rate of the Singapore dollar have caused Breida Co. to reassess its investment. Breida is considering divesting the subsidiary that it had acquired. Now that Breida has calculated the U.S. dollars received from divesting, as shown in the following table, it must compare this value to the present value of cash flows from continuing with the foreign subsidiary. Complete the last row of the table, filing in the cumulative PV of cash flows from the subsidiary in U.S. dollars. Note: The PV values shown in the table are rounded to two decimal places, Use these rounded values in the calculations for cumulative PV of cash flows. Suppose that Breida Co., a U.S.-based MNC, had previously acquired a target company in Singapore. The initial valuation of the target yielded a positive net present value of the target's cash flow. However, changes in the forecasted exchange rate of the Singapore dollar have caused Breida Co. to reassess its investment. Breida is considering divesting the subsidiary that it had acquired. Now that Breida has calculated the U.S. dollars received from divesting, as shown in the following table, it must compare this value to the present value of cash flows from continuing with the foreign subsidiary. Complete the last row of the table, filing in the cumulative PV of cash flows from the subsidiary in U.S. dollars. Note: The PV values shown in the table are rounded to two decimal places, Use these rounded values in the calculations for cumulative PV of cash flows
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