
CROSS-BORDER INVESTMENT DECISIONS 357
the project can be met by the company through its retained
earnings.
The marginal corporate tax rate in Hong Kong is 30 per-
cent. The subsidiary unit in Hong Kong is allowed to repatriate
the profits to the parent as and when it wants by paying an addi-
tional tax at 10 percent on the amount to be remitted.
The project life is estimated at 10 years. The company may
follow the straight-line method of depreciation. The market
value of the plant at the end of the project life is difficult to
estimate.
Oneofthemostattractivefeaturesoftheproposalisthe
special financing the Hong Kong government is willing ...