The Parent Viewpoint needs to consider all incremental cash flow impacts including loss on export sales to Argentina $($current practice$).$

Cash Flows to Bonilla Inc. in US: Parent Viewpoint

Sales revenue on exports to Argentina

Less direct and indirect costs on exported sets

Profit on Bonilla Inc.$\text{'}$s component sales

Less US taxes on component profits @ $28\%$

a$)$ Net profit on component sales after$-$tax

b$)$ Cash flow from Argentina to Bonilla Inc. $($US$)($row $35)$

Cash flow loss on Bonilla Inc.$\text{'}$s loss of exports $($units$*$ $$20)$

Less US taxes on export losses $,40\%$

c$)$ Net cash flow reduction after$-$tax

d$)$ Recapture of NWC in Argentina $($no tax$)$

Total parent cash flow, after$-$tax $(a+b+c+d)$

Initial investment

Free cash flow to parent for discounting

Internal rate of return $($IRR$)$

Net present value $($NPV$)$