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 downward here because the equity investment of the subsidiary is little the buyer would be assuming more debt if part of the initial investment in the subsidiary is supported by local bank loans).6. Required parents sum up of return 18 percent. To Find Present Payment, Given Future Required AmountGivenInterest181818181818Number of years123456Present Value Interest Factor0.8474576270.718184430.6086308730.5157888750.4371092160.370431539Initial investment funds 40,000,000.00 Initial Investment in Marks at $.50 per mark 80,000,000.00 Net Cash Flow 8,000,000.0010,000,000.0014,000,000.0016,000,000.0016,000,000.0016,000,000.00 Net Cash to lift 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