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Suppose there is an American owned company in England that imports raw materials from the U.S. and then sells the final product to both British
Suppose there is an American owned company in England that imports raw materials from the U.S. and then sells the final product to both British customers & US customers. Assume the following: Exchange rate is pounf 2/8 Total sales-units 1 million U.K. - 500,000 units at pound 10/unit US. - 500,000 units at $5/unit Tax rate is 50% Deprecation is pound 1 million 1yr Cost of Goods sold per unit Raw materials for the US (cost/unit) $3 British labor costs(cost/unit) pound 2 What are the cash flows from operations in dollars for the yr
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