6. K Co., is a U.S.-based MNC that needs funding for a project in Russia: U5. riskfree rate = 6 96 Russia risk-free rate = 6 96 Risk premium on dollardenominated debt provided by US. creditors = 4 5'6 Risk premium on eurodenominated debt provided by Russian creditors = 5 % Beta of the venture = 1.2 Expected market return in the U.5. = 10% US. corporate tax rate = 30% Russian corporate tax rate = 40% In what countr'jlr should X nance its debt? a. U.5. b. Russia c. Either country since the cost of debt is the same d. Not enough information is provided to answer the question Fain MNC is considering establishing a two-year project in New Eealand with a $30 million initial investment. The rm's cost of capital is 12%. The required rate of return on this project is 18%. The project is expected to generate cash flows of N2$12 million in Year 1 and NZ$30 million in Year 2. excluding the salvage value. Assume no taxes, and a stable exchange rate of $.60 per NZ$ over the next two vears. All cash flows are remitted to the parent. What is the breakeven salvage value? a. about NZ$11 million. . about NZ$15 million. about NZ$31 million. . about NZ$25 million. . None of the above 1- b c d e