20. Your company has just dispatched ten year's supply of products to your subsidiary in country ABC. In normal times, t
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20. Your company has just dispatched ten year's supply of products to your subsidiary in country ABC. In normal times, t
20. Your company has just dispatched ten year's supply of products to your subsidiary in country ABC. In normal times, the sales of products in ABC will generate a yearly cash flow of $160,000 discounted at 18% to determine the present value. Unfortunately, there is a 25% probability that there will be a revolution in the country, and the new govemment will expropriate all the payments from your subsidiary. The present value of all the future cash flows, considering the political risk, will be? a. $455,912.40 b. $487,354.73 c. $503,096.65 d. $539,290.35 e. None of the above