=+SA 26-2 Personal investment analysis International Electronics Inc. invested $1,000,000 to build a plant in a foreign country.

The labor and materials used in production are purchased locally. The plant expansion was estimated to produce an internal rate of return of 20% in U.S. dollar terms. Due to a currency crisis, the currency exchange rate between the local currency and the U.S.

dollar doubled from two local units per U.S. dollar to four local units per U.S. dollar.