Etemadi Amalgamated, the U.S. manufacturing company in Problem 3, is still considering a new project in the

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Etemadi Amalgamated, the U.S. manufacturing company in Problem 3, is still considering a new project in the euro area. All information presented in Problem 3 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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Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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