[Pohziliang96Malaysia2]

Hi, for this question (Kuta), if I recall correctly, the mark allocation is as follows:

– 8 marks about IMF and political opposition

– 19 marks for calculation (CFs from the foreign country, US CFs, base case NPV, and APV)

– 7 marks for approaches, discussion, assumptions

– 6 marks for TP

– 10 marks of prof marks

[Pohziliang96Malaysia2]

Hi. Thanks for your reply.

I just used the discount rates (two) given in another exhibit as the discount rates to appraise NPV (foreign) and NPV (US) particularly.

If I’m not wrong 13% for foreign and 9% for US.

Yup, I agreed on other things you said.

[Pohziliang96Malaysia2]

Hi, is there anyone here?

I wanted to check if my answers were correct for foreign cash flows.

It was a question called Kuta and my cash flows from Kuta were $45,000 before adding US cash flows (additional 12% tax on taxable profits and components’ contribution). And I got around $2+ million base case NPV after combining Kuta cash flows, US cash flows and NPV of license.

In the end, the APV was $5+ million plus.

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