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Hi John,
Please inwas wondering how the 1mm was arrived at as the figure for the new machinery under the licensing agreement.
Also, is the licensing agreement with KBD to be calculated in pounds or hotternian dollars?
Thank you
The 1M is because the machinery supplied by Partsea will increase their cash flow in year 1 by $1M. Although this is written under the FDI heading in the question, presumably it will still apply if licensing, because the licensing agreement only starts from year 2.
The licensing agreement is calculated in pounds, because it is Partsea making the decision and Partsea is a UK company and so will make decisions in pounds.
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