Etemadi Amalgamated, the U.S. manufacturing company in Problem 7, is still considering a new project in Portugal.

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Etemadi Amalgamated, the U.S. manufacturing company in Problem 7, is still considering a new project in Portugal. All information presented in Problem 7 is still accurate, except the spot rate is now S = $0.85/€, about 26% lower. What is the new present value of the project in dollars? Should Etemadi Amalgamated undertake the project?


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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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