Determine the probability distribution of Gandors net present value s for the joint venture. Capital budgeting analyses

Question:

Determine the probability distribution of Gandor’s net present values for the joint venture. Capital budgeting analyses should be conducted for these three scenarios:

• Scenario 1. Based on original assumptions

• Scenario 2. Based on an increase in the corporate income tax by the Chinese government

• Scenario 3. Based on the imposition of a withholding tax by the Chinese government

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