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Problem 2-20 points Company B wants to compare the investment in three different countries based on the following information CFAT is Cash Flow After Tax

SL- Straight line

T.I- Taxable Income

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Solution 0 Computation of Depreciation @ Fan Country! Deprectation - Investment / purchase Straight line) life of peo Assetgiven n=3 years (Recovery years) Depreciation rate under DOB method & o 3 years - bo x2x100 = 2 x100 66.67% Statement of Deprcountry 2 Before dan Goons Income 27000 27000 27000 27000 27000 less en porse -2006 -2000 - 2ov 20vo -2000 lees DepreciationPUF PUFA @2-25% Discounted CFs -100,000 year cash flow - 100,000 i an, ovo 2 25000 - 3 21944 0978 9 48350 0.956 20518 - 4 5© Country 3 Depreciation under DDR method (Double Declining balance ] Depreciation CODB) = 2x Broj Investment Tife of asset =Summary cornbyo County popu 29574 ५ 15,107 16,988 - county o to be Nov of asset which is invested in is higher the company Sh

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