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why is it importang to separately identify the value of any side effects that accompany foreign investment projects? tax holiday CONCEPTUAL QUESTIONS 13.1 Describe the

why is it importang to separately identify the value of any side effects that accompany foreign investment projects? image text in transcribed
tax holiday CONCEPTUAL QUESTIONS 13.1 Describe the two recipes for discounting foreign currency cash flows. Under what conditions are these recipes equivalent? 13.2 Discuss each cell in Exhibit 13.8. What should (or shouldn't) a firm do when faced with a foreign project that fits the description in each cell? 13.3 Why is it important to separately identify the value of any side effects that accompany foreign investment projects? PROBLEMS Cross-border capital budgeting under the international parity conditions. 13.1 You work for an Israeli company that is considering an investment in China's Sichua pce. The investment yields expected after-tax Chinese new yuan cash as follows: +CNY500m +CNY300m

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