To calculate NPV from a parent company perspective, IWC begins by calculating cash flows to parent (CFP) on an after-tax basis in U.S. dollars over the 3-year investment horizon. What is the formula to calculate CFP? Multiple choice question.

CFP = Interest on parent loan - Dividend in Year 1 - U.S. taxes paid in 3 years - Repayment of parent loan in 3 years - Terminal value in 3 years 

CFP = Earnings after-tax + Depreciation 

CFP = Interest on parent loan net of withholding taxes in 3 years + Dividends net of withholding taxes in 3 years - U.S taxes on interest in 3 years + Repayment of parent loan in Year 3 + Terminal value in Year 3 net of withholding taxes

CFP = Interest on parent loan net of withholding taxes in year 1 + dividends net of withholding taxes in 3 years - U.S taxes on interest in 3 years + Repayment of parent loan in Year 3 - Terminal value in Year 3