Question: PLEASE ONLY ANSWER NUMBER 10 For use in problem #9,10,11, and 12 An Indian pharma company is considering a project in Australia. The initial investment
PLEASE ONLY ANSWER NUMBER 10
For use in problem #9,10,11, and 12 An Indian pharma company is considering a project in Australia. The initial investment is will be AUD 150 MM plus necessary working capital of AUD 20MM. The fixed asset will be depreciated down to zero over the 3 years' life of the project and is expected that it could be sold (salvage value) for AUD 75 MM. The project will generate operating cash flows of AUD 40MM (including the depreciation of investment) each year. All cash flows, operating and terminal value) are after tax. Other information available: 9. What is the project's NPV in AUD? A. AUD 249.89 B. AUD 25.00 C. AUD 5.00 D. (AUD 10.49) 10. And in the parent company's home currency (INR)? A) INR 249.89 B) (INR 524.45) C) INR 75.00 D) INR 1,249.89
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