What is break-even salvage value

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Reference no: EM131553322

An MNC is considering establishing a two-year project in west germany with Euro 30 million initial investment. The required rate of return on this project is 18%. The project is expected to generate cash flows of Euro 15 million in Year 1 and Euro 20million in Year 2, excluding the salvage value. Assume no taxes, and a stable exchange rate of $1.15 /Euro over the next two years. All cash flows are remitted to the parent. What is the break-even salvage value in ($)?

Reference no: EM131553322

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