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2. Compute the NPV in Euros by translating the project's future peso cash flows into Euros at expected future spot exchange rates. Note that Ariel's

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2. Compute the NPV in Euros by translating the project's future peso cash flows into Euros at expected future spot exchange rates. Note that Ariel's Euro hurdle rate for a project of this type was 8%. Again, assume that annual inflation rates are expected to be 7% in Mexico and 3% in France

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