Page 51 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 51 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u06290 1 2 3Cash Follows -20,000,000 RIN 8,000,000 RIN 9.000.000 RIN 10,000,000 RINSalvage value +2,000,000 RIN+8,820,000 RIN+9,450,000 RINRemitted funds to theparent in Rin30,270,000 RINThe exchange rate 0.23 $/RIN 0.23 $/RINRemitted fundsto the parent and initialinvestment in $-4.600,000$ 6,962,100$NPV = %u2212%ud835%udfd2%ud835%udfd2, %ud835%udfd4%ud835%udfd4%ud835%udfce%ud835%udfce%ud835%udfce%ud835%udfce, %ud835%udfce%ud835%udfce%ud835%udfce%ud835%udfce%ud835%udfce%ud835%udfce + %ud835%udfd4%ud835%udfd4,%ud835%udfd7%ud835%udfd7%ud835%udfd4%ud835%udfd4%ud835%udfd0%ud835%udfd0,%ud835%udfcf%ud835%udfcf%ud835%udfce%ud835%udfce%ud835%udfce%ud835%udfce$ = %ud835%udfd4%ud835%udfd4%ud835%udfd1%ud835%udfd1%ud835%udfce%ud835%udfce,%ud835%udfd5%ud835%udfd5%ud835%udfd0%ud835%udfd0%ud835%udfd7%ud835%udfd7$(%ud835%udfcf%ud835%udfcf+%ud835%udfce%ud835%udfce.%ud835%udfcf%ud835%udfcf%ud835%udfce%ud835%udfce)%ud835%udfd1%ud835%udfd14- Blocked funds, reinvestment, and exchange rate changes:S ($/RIN) = ( 1+%uf070$)3X S ($/RIN)= (1+0.08 )3X 0.23= 0.26 $/RIN3 1+%uf070RIN 0 1+0.040 1 2 3Cash Follows -20,000,000 RIN 8,000,000 RIN 9.000.000 RIN 10,000,000 RINSalvage value +2,000,000 RIN+8,820,000 RIN+9,450,000 RINRemitted funds to theparent in Rin30,270,000 RINThe exchange rate 0.23 $/RIN 0.26 $/RINRemitted fundsto the parent and initialinvestment in $-4.600,000$ 7,870,200$NPV = %u2212%ud835%udfd2%ud835%udfd2, %ud835%udfd4%ud835%udfd4%ud835%udfce%ud835%udfce%ud835%udfce%ud835%udfce, %ud835%udfce%ud835%udfce%ud835%udfce%ud835%udfce%ud835%udfce%ud835%udfce + %ud835%udfd4%ud835%udfd4%ud835%udfd5%ud835%udfd5,%ud835%udfd6%ud835%udfd6%ud835%udfd5%ud835%udfd5%ud835%udfce%ud835%udfce,%ud835%udfd0%ud835%udfd0%ud835%udfce%ud835%udfce%ud835%udfce%ud835%udfce$ = %ud835%udfcf%ud835%udfcf, %ud835%udfd1%ud835%udfd1%ud835%udfcf%ud835%udfcf%ud835%udfd0%ud835%udfd0, %ud835%udfd7%ud835%udfd7%ud835%udfd7%ud835%udfd7%ud835%udfd5%ud835%udfd5$(%ud835%udfcf%ud835%udfcf+%ud835%udfce%ud835%udfce.%ud835%udfcf%ud835%udfcf%ud835%udfce%ud835%udfce)%ud835%udfd1%ud835%udfd15- The foreign required rate of return for RinggitI = RIN(1+10%) %u00d7 (1+8% )%u2013 1 = 5.9%(1+4% )