Year 0	Year 1	Year 2	Year 3	Year 4
S$ to be remitted by subsidiary				S$8,500,000	S$8,500,000	S$8,500,000	S$8,500,000
Due to the blocked funds restriction, the firm is not allowed to remit funds until year 4. The cashflows in
Year 1, 2, and 3 have to be reinvested in the host country at 6%
S$ accumulated by reinvesting
funds to be remitted
Withholding Tax (10%)
S$ remitted after withholding taxes
Salvage value							S$8,000,000
Exchange rate							$0.50
Cash flows to parent
Initial Investment by parent			$10,000,000
The above information is for a firm who is subject to blocked funds restriction, what is the NPV is the discount rate is 12%?

Question 12 options:

	Around $4.23 mil.
	Around $3.87 mil.
	Around $3.56 mil.
	Around $3.18 mil.