Buckeye Corp


Initial 9,600,000,000
Revenue 5,000,000,000
Life of Project 4 years
Subsidiary Tax 0%
With Holding Tax 20%
Parent Tax 20%
Required Rate of Return 18%
Spot Rate 0.001


Estimates Exchange Rate
Year 1 = 0.0008
Year 2 = 0.0006
Year 3 = 0.0004
Year 4 = 0.0003


NPV (Subsidiary Analysis)

Revenue   -9,600,000,000 5,000,000,000 5,000,000,000 5,000,000,000 5,000,000,000
NPV (Pesos) 3,850,309,024          


NPV (Parent Analysis)

Revenue     5,000,000,000 5,000,000,000 5,000,000,000 5,000,000,000
With Holding Tax     1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Funds remitted to parent     4,000,000,000 4,000,000,000 4,000,000,000 4,000,000,000
Cash Flow     3,200,000 2,400,000 1,600,000 1,200,000
Corporate Tax     640,000 480,000 320,000 240,000
Cash Flow to Parent   -9,600,000 2,560,000 1,920,000 1,280,000 960,000
NPV (Dollars) -4,777,390