Natural Mosaic. Natural Mosaic Company (U.S.) is considering
investing Rs50,000,000 in India to create a wholly owned tile
manufacturing plant to export to the European market. After five
years, the subsidiary would be sold to Indian investors for
Rs100,000,000. A pro forma income statement for the Indian
operation predicts the generation of Rs7,000,000 of annual cash
flow, is listed in the following table.
Sales revenue
30,000,000
Less cash operating expenses
(17,000,000)
Gross income
13,000,000
Less depreciation expenses
(1,000,000)
Earnings before...