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Using this information can you please find out 1) profitability index2) internal rate of return Global company is considering expanding its international presence. The company

Using this information can you please find out 1) profitability index2) internal rate of return

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Global company is considering expanding its international presence. The company believes that it has great potential for international sales. Recently, 20% of the Global Company's sales were in foreign markets. The goal is to expand the foreign sales to 30%. In order to accomplish this goal, the company needs to invest heavily. After considering tax, marketing, labour and political issues the company has decided to invest in India and Dubai. The following estimates have been provided: India Dubai Initial investment $2,500,000 $1,400,000 Estimated useful life 20 years 20 years Annual revenues (accrual) $500,000 $380,000 Annual expenses (accrural) $200,000 $180,000 Annual cash inflows $550,000 $430,000 Annual cash outflows $222,250 $206,350 Estimated salvage value $500,000 $0.00 Discount rate 9% 9% Required

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