The market study carried out by Turki indicates that the cost of building a date factory in Virginia, USA costs KD 250,000. The additional working capital is estimated to be KD 60,000. Turki intends to repatriate all net income to Kuwait. Turki has contracted with a US business consultant who supplied the following estimates

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(1) The market study carried out by Turki indicates that the cost of building a date factory in Virginia, USA costs KD 250,000. The additional working capital is estimated to be KD 60,000. Turki intends to repatriate all net income to Kuwait. Turki has contracted with a US business consultant who supplied the following estimates 0 Expected sales (US $) Exchange rate ($/KD) Total costs ($) Depreciation ($) ● 3 Assume US tax rate is 30% WACC of Kuwait Co. is 15% 1 900,000 3 500,000 30,000 2 1,100,000 3.6 520,000 30,000 3 1,200,000 3.8 550,000 30,000 You need to carry out the required calculations to show whether the investment is attractive to Turki or not (1) The market study carried out by Turki indicates that the cost of building a date factory in Virginia, USA costs KD 250,000. The additional working capital is estimated to be KD 60,000. Turki intends to repatriate all net income to Kuwait. Turki has contracted with a US business consultant who supplied the following estimates 0 Expected sales (US $) Exchange rate ($/KD) Total costs ($) Depreciation ($) ● 3 Assume US tax rate is 30% WACC of Kuwait Co. is 15% 1 900,000 3 500,000 30,000 2 1,100,000 3.6 520,000 30,000 3 1,200,000 3.8 550,000 30,000 You need to carry out the required calculations to show whether the investment is attractive to Turki or not

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It is given that initial investment is of KD250000 and a working capital ... View the full answer