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Doohicky Devices. Doohickey Devices, Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted to other companies, but for reasons of

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Doohicky Devices. Doohickey Devices, Inc., manufactures design components for personal computers. Until the present, manufacturing has been subcontracted to other companies, but for reasons of quality control Doohicky has decided to manufacture the components itself in Asia. Analysis has narrowed the choice to two possibilities, Penang, Malaysia, and Manila, the Philippines. At the moment only the summary of expected, after-tax, cash flows displayed in the popup tablo, E. is available. Although most operating outflows would be in Malaysian ringgit or Philippine pesos, some additional U.S. dollar cash outflows would be necessary, as shown in the above popup table. The Malaysia ringgit currently trades at RM3.8963/$ and the Philippine peso trades at Ps49.81/$. Doohicky expects the Malaysian ringgit to appreciate 2.2% per year against the dollar, and the Philippine peso to depreciate 4.9% per year against the dollar. If the weighted average cost of capital for Doohicky Devices is 15.0%, which project looks more promising? Calculate the net dollar cash flows from the operations in Penang, Malysia for years 2012 through 2014 below: (Round the exchange rate to four decimal places and the dollar amount to the nearest cent.) 01 urd 2012 2013 2014 Doohicky in Penang (After-tax) Net cash flows (ringgit) RM (28,000) RM 8,200 RM 6,700 3.8963 Expected exchange rate (ringgit/S) Ispot / (1 +0.022) Cash flows (S) Cash outflows (S) Net total cash flows ($) $ (140.00) (140.00) $ $ $ rant Enter any number in the edit fields and then click Check Answer. 206 parts remaining Clear All Check Answer i Data Table 2012 (28,000) 2013 8,200 (140) 2014 6,700 (140) 2015 7,500 (160) 2016 9,100 (130) 2017 8,000 chicky in Penang (after-tax) ringgit cash flows ar cash outflows hicky in Manila (after-tax) peso cash flows ar cash outflows (580,000) 200,000 (100) 180,000 190,000 220,000 220,000 (200) (300) (400) # Print Done

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