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Your company has just dispatched ten year's supply of products to your subsidiary in country ABC. In normal times, the sales of products in ABC
Your company has just dispatched ten year's supply of products to your subsidiary in country ABC. In normal times, the sales of products in ABC will generate a yearly cash flow of $160,000 discounted at 23% to determine the present value. Unfortunately, there is a 25% probability that there will be a revolution in the country, and the new government will expropriate all the payments from your subsidiary.
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
