What is the total cost of the investment

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Problem a. How does the international price elasticity of demand for exports affect the profitability of an investment?

Problem b. Let us say, we borrow 90% of a capital budgeting project costing $100 million. That means we use the equity of $10 million. We also need additional labor to set up the project. What is the total cost of this investment?

Problem c. We invest in a foreign land. The host government provides a subsidy for us of $30 million in equivalent foreign money. What is our investment?

Reference no: EM132935097

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