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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Spot rate 085 Risk free rate on USD 400 Risk free rate o...View the full answer
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