Title: Negotiation and Adjusted NPV for International Joint Venture Projects
Authors: Sercu, Piet ×
Uppal, R #
Issue Date: 1995
Series Title: Journal of Multinational Financial Management vol:5 issue:2 pages:103-121
Abstract: In this paper, we propose a three-step Adjusted NPV approach to evaluate and negotiate joint venture: (1) a full-equity stage, (2) an adjustment for intra-group financial arrangement, and (3) a correction for the effects of external financing. We also present a framework for the negotiation of the joint-venture contract itself in each of the stages, including royalties, transfer pricing, lump-sum fees, or equity shares that stand for intangible assets brought in. Our approach can handle capital market segmentation (implying different discount rates) as well as differential taxation (across home countries and types of income.)
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center International Finance, Leuven
× corresponding author
# (joint) last author

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