The problem asks for the after-tax incremental cash flow in USD. Therefore you need to convert revenue figures from KRW to USD. In year 1 Tot Revenues amount to:
100,000 KRW divided by 1250 KRW/USD multiplied by 200,000 units sold = 16 Mio USD.
The 0,8 Mio USD Cash Taxes in year 1 derives from 2Mio Tax Profits before Tax multiplied by 40% tax rate.
In my view showing all these calculations in an essay can be the real tough problem. :)
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Giulio La Bua
Director/Manager
OPENTEXT
Munich
Germany
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Original Message:
Sent: 10-07-2019 12:47 PM
From: Syed Yousuf Jamal
Subject: please help in solving
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Syed Yousuf Jamal
None
Alexandria
Egypt
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