Multinational finance and accounting Essay Example | Topics and Well Written Essays - 3000 words

Multinational finance and accounting - Essay Example5. (the forecast of proceeds is revised down(prenominal) here because the equity investment of the subsidiary is less the buyer would be assuming more debt if lift off of the initial investment in the subsidiary is supported by local bank loans).6. Required parents rank of return 18 percent. To Find Present Payment, Given Future Required AmountGiven worry181818181818Number of years123456Present Value Interest Factor0.8474576270.718184430.6086308730.5157888750.4371092160.370431539Initial coronation 40,000,000.00 Initial Investment in Marks at $.50 per mark 80,000,000.00 loot Cash Flow 8,000,000.0010,000,000.0014,000,000.0016,000,000.0016,000,000.0016,000,000.00 Net Cash to Parent 4,000,000.005,000,000.007,000,000.008,000,000.008,000,000.008,000,000.00 Net Cash to Parent after tax 3,600,000.004,500,000.006,300,000.007,200,000.007,200,000.007,200,000.00 Salvage After 6 years30000000 Exchange Rate1