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Chmura sells packing material to its foreign subsidiary in dollar, what is deducted from the MP cashflows, reducing the foreign tax base and also the cashflows. But as it is revenue for the holding company, i would have assumed it should be added back to the dollar cashflows when we calculate the value of the whole project. It is not added back in the answers, why not?
They will get income from the subsidiary for the special packaging, but they will also have the cost of buying the special packaging.
So the net effect for Chmura itself is zero.
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