Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kattle would like this subdury to produce and sell guitars locally in Singapore, and needs assistance with capital budgeting. The duration of this project is four years, with an initial investment of 5$10,000,000 (Singapore dollars). The required rate of return is expected to be 15.00% for at four years of the project Year o Cash Flows to Parent, excluding Salvage Value Initial Investment Year 1 Year 2 Year 3 $2,100,000 $2,100,000 $3,600,000 Year 4 $3,900,000 $10,000,000 Which of the following most closely approximates the break even salvage value? $3,478,975 O $3,826,873 $4,174,770 54.522668 Assume that an MNC is considering establishing a subsidiary in a foreign country. True or False: A lower tax rate in the host country will increase periodic cash flows. O True O False