Pricing a Foreign Target Alaska, Inc.,
would like to acquire Estoya Corp., which is located in Peru. In
initial negotiations, Estoya has asked for a purchase price of 1
billion Peruvian new sol. If Alaska completes the purchase, it
would keep Estoya’s operations for two years and then sell the
company. In the recent past, Estoya has generated annual cash flows
of 500 million new sol per year, but Alaska believes that it can
increase these cash flows 5 percent...