The Daily Planet Has a Wholly Owned Foreign Subsidiary in Brazil.The

The Daily Planet has a wholly owned foreign subsidiary in Brazil.The subsidiary earns 30 million reals per year before taxes in Brazil.The foreign income tax rate is 30%.The subsidiary repatriates the entire after-tax profits in the form of dividends to the Daily Planet.The U.S.corporate tax rate is 40% of foreign earnings before taxes.
a)Compute after-tax cash flow to the Daily Planet from this investment (in reals).Use the table below.

$\begin{array}{llcc} \text {Before-tax earnings (in reals) } &\underline{\quad\quad\quad} \\ \text {Foreign income tax at \(30 \%\) } &\underline{\quad\quad\quad}\\ \text { Earnings after foreign income taxes } &\underline{\quad\quad\quad}\\ \text { Dividends repatriated } &\underline{\quad\quad\quad}\\ \text { Gross U.S. taxes at \(40 \%\) of foreign earnings before taxes } &\underline{\quad\quad\quad}\\ \text {Foreign tax credit } &\underline{\quad\quad\quad}\\ \text { Net U.S. taxes payable } &\underline{\quad\quad\quad}\\ \text { After-tax cash flow } &\underline{\quad\quad\quad}\\ \end{array}$








b)If the exchange rate is .56 ($/reals),what is the after-tax cash flow in dollars?
c)Depreciation related cash flow is 2 million reals per year for five years for another Daily Planet investment in Brazil.The exchange rate is expected to be .59 ($/reals).The Daily Planet applies a 15% discount rate to foreign cash flows.What is the present value (in dollars)of the depreciation related cash flow?