17: Assignment - Multinational Financial Management 7. International capital budgeting One of the important components of multinational capital hudpeting is to analyze the cash flows generated from subsidiary companies. Consider this case: Sing Associates Inc. is a U.S. based firm evaluating a project in Medco, You have the following information about the project: The project requires a 150,000 peso investment today and is expected to generate cash flows of 63,400 pesos at the end of the next three years. The current U.S. exchange rate with the Meccican peso is 11.113 pesos per US dollar, and the exchange rate is expected to remain constant The firm's WACC is 10%, and the project is of average risk What is the dollar-denominated net present Value (NPVof this project? 3827:59 $609.06 24 RI 8 > 5 6 8 7 8 9 What is the dollar denominated net present value (NPV) of this project? $827.83 O $689.36 $724,35 O $655.37 There are three major types of international credit markets. Read the following statement and then indicate which type of international credit market is being described Georia Industries Inc, US-based company, issued dollar-denominated bonds in China and India to finance a multinational project. Eurobond Foreign bond Eurocredit o 5 5 6 7 8 R T . U 0 P VEGH