Havel Robotics Company (a U.S-based firm) is considering establishing a subsidiary in China to assemble industrial robots on January 1, Year 1. If Havel makes the investment, it will operate the plant for one year and then sell the building and equipment to Chinese investors. 1. The initial investment would be $1,000. 2. Havel will repatriate 100% of the estimated net operating cash flows as dividend which is ¥ 3,000. The terminal value is ¥ 6,000. The China withholding tax is 10% on dividends and the terminal value. Neither the dividends nor the terminal value will be subject to U.S. income tax. 3. Havel uses a 16% discount rate. The present value factor is 0.862 for the end of Year 1. 4. The exchange rate between the RMB and the US$ is expected to be ¥ 6.7=$1 on Jan. 1, Year 1 and ¥ 6.8 =$1 on Dec. 31. Year 1. What is the net present value of the investment from a parent company perspective? O $27 O $5,982 $141 O $191

Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow -$590,000 0 1 2 √34 3 220,000 163,000 228,000 207,000 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 7 percent. Assume Anderson uses a required return of 13 percent on this project. a. What is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the IRR of the project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. b. X Answer is complete but not entirely correct. NPV IRR $ 17,315.59 x 14.40 × %

Compute the necessary calculations and advise Apple Limited if it is worth investing in neither, in one or both of these two opportunities

Leland Industries is a producer of bakery and snack goods in Western Canada and are considering expending into Eastern Canada. The expansion is estimated to cost $10,000,000 for a new production facility. This project is in the same line of business as the firm's current operations and is therefore not expected to alter the risk of the firm. The most recent balance sheet is provided below. Leland Industries Balance Sheet As at Dec 31, 2021 Assets Liabilities Accounts Payable Other Current Liabilities $ Cash & Marketable Securities 425,000 300,000 Accounts Receivable $ 400,000 425,000 Inventories 500,000 Total Current Liabilities 725,000 Total Current Assets $ 1,325,000 Net Fixed Assets 18,000,000 LT Debt * 6,500,000 Preferred Stock ** 2,500,000 Common Stock*** 3,000,000 Retained Earnings 6,600,000 Total Liabilities & Total Assets $ 19,325,000 Owners Equity $ 19,325,000 Notes to financial statements: * The 5% semi-annual coupon bonds have a face value of $1,000, were issued 5 years ago…