USA - based MNC has a project in Switzerland (data provided in CHF)

Maturity = 3 years

Initial investment = CHF 2 bil

	Price of Product	Quantity
Year 1	CHF 5,000	1 million unit
Year 2	CHF 7,000	0.8 million unit
Year 3	CHF 13,000	1.4 million unit

Variable cost = CHF 3,500/unit

Fixed cost = CHF 55 million

Depreciation = 25% of initial investment

Taxes: CHF 15%, USD 20%

Withholding tax = 7%

Exchange rate: 1CHF = 1.01 USD

Salvage value = CHF 37 mil

require rate of return = 9%

Calculate the subsidiary's NPV (in CHF including local taxes).