(i) Future exchange rates predicted on inflation 
rate differential 1
Sales revenue 1
Production and selling costs 1
Special packaging costs 2
Training and development costs 1
Correct treatment of tax and tax allowable depreciation 2
Years 1 to 5 cash flows in $ and present values of cash flows 2
Ignoring initial investigation cost and additional taxation in Chmura Co host country 1
Correct treatment of land, buildings, machinery and working capital 2
Net present value of the project 1

max marks 14

(iii)Estimated value and initial recommendation 2–3
Up to 2 marks per assumption discussed 5–6
Up to 2 marks per additional business risk discussed 5–6
Overarching recommendation(s) 1–2

Max marks 14