Thinking of acquiring stash tea

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Tata Tea Ltd. is thinking of acquiring Stash Tea, a U.S. company. Tata expects Stash to generate sales of $100 per year for two years, after which Stash will be worthless. Tata also expects the current exchange rate of INR50 / USD to remain in effect for the next two years. If Tata’s required rate of return is 20%, what is the maximum amount in INR that Tata would be willing to pay for Stash?

Reference no: EM131569504

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