Question: Amara plc is a UK based MNE and is considering to establish a subsidiary in Japan. The new subsidiary would cost 400 million which would

Amara plc is a UK based MNE and is considering to establish a subsidiary in Japan. The new subsidiary would cost 400 million which would be required immediately. Production and sales are forecast at 1.2 million units in the first year rising by 10% per year for the following three years. The contribution per unit is expected to be 260, and total fixed cost of 3.5 million per year (not including depreciation). After the first year,

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