Scenario alpha tile co. is considering a capital expenditure of 9.5mm in india to create wholly owned tile manufacturing plant to export to the european market Study guides, Class notes & Summaries

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Scenario:  Alpha Tile Co. (U.S.) is considering a capital expenditure of $9.5MM in India to create wholly owned tile manufacturing plant to export to the European market.
  • Scenario: Alpha Tile Co. (U.S.) is considering a capital expenditure of $9.5MM in India to create wholly owned tile manufacturing plant to export to the European market.

  • Answers • 5 pages • 2019
  • Scenario: Alpha Tile Co. (U.S.) is considering a capital expenditure of $9.5MM in India to create wholly owned tile manufacturing plant to export to the European market. After five years the subsidiary would be sold to Indian investors for INR1,000,000,000 above the value of the NWC tied up in the project. There will be no capital gains tax on the final sale. The assumptions is sales revenue will be €3.85MM next year, with sales growing 5% per year and 61% of sales required for cash operating...
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