You have just been hired by a local corporation in their capital budgeting division.
Your first assignment is to determine the free cash flow and NPV for your corporation expansion planning.
For that your corporation would like to evaluate a proposed new subsidiary in foreign country at year 2017.
Choose 2 foreign countries that you think would benefit parent corporation. Make a comparison between these 2 foreign countries.
Here are the information you need to know:

1) You need to prepare forecasted 5 years multinational capital budgeting

2) The initial capital expenditure equal to 20% of the corporation's Property, Plant, and Equipment (PPE) at the end of fiscal year 2015.

3) The first year revenue in the new subsidiary (product) are expected to be 20% of the corporation's total revenue at the end of fiscal year 2015.

4) The first year cost in the new subsidiary (product) are expected to be 15% of the corporation's total cost at the end of the fiscal year 2015.

5) You expect that the revenue will grow 20% for the second year and 15% increase for the third, and fourth years and 25% increase for the fifth year.

6) You expect that the cost will increase annually by 1.0% after the second year due to the increase in the inflation rate

7) All cash flow received by the subsidiary are to be sent to the parent at the end of each year. The subsidiary will use its working capital to support ongoing operations.

8) The plant, land and equipment depreciation are depreciated over 5 years using the straight-line depreciation method.

9) In 5 years, the subsidiary is to be sold. The corporation planning to sell it's subsidiary at 15% higher than the initial investment.

10) The parent corporation requires a 15% rate of return on this project - new subsidiary.

Data:

PPE COMPANY	15,800,000
REVENUE COMPANY	640,241,000
COST COMPANY	105,879,000