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11. You are analyzing a potential 3-year investment in the UK. It will require an initial investment of 70,000.00 and is forecasted to yield cashflows
11. You are analyzing a potential 3-year investment in the UK. It will require an initial investment of 70,000.00 and is forecasted to yield cashflows of 70,000.00 for the next 3 years. As of today, the spot exchange rate is $1.2143 / and the rates of inflation expected to prevail for the next year in the US is 5 % and in 2 % in the UK. Your estimated cost of capital in dollars is 7.52%. What is the NPV in dollars? (a) $ 148,891.83 (b) $163,892.83 (c) $122,615.36 (d) $166,392.23 (e) None of the above
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