Many emerging economies have restrictions on capital outflows to protect their growth and stability; for example, they

Question:

Many emerging economies have restrictions on capital outflows to protect their growth and stability; for example, they may impose high taxes on repatriated profits by foreign companies. Where andhowwould you include such taxes in the DCF valuation of your company’s subsidiary in a highgrowth emerging economy, if the taxes are (1) levied in perpetuity or (2) gradually decreased to zero over the next 10 years as the economy starts to mature?

Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...