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2. Use the following estimated cash flows over the next five year based on the year(s) in which the cash flow is expected to be

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2. Use the following estimated cash flows over the next five year based on the year(s) in which the cash flow is expected to be received and utilize the respective risk adjusted discount rates to estimate the value of New Company, an American MNC operating in several countries. Convert all cash flows to U.S. dollars (round to two decimal places). Cash Flow in Local Cash Flow in Year in which cash flow Risk Adj. PV of Cash Currency Dollars is expected Disc. Rate Flow 10,000,000 U.S. $10,000,000 Every year 5% 2,000,000 Aust. Next three years 6% 12,000,000 Quetzal After years four and five 10% 15,000,000 Euros After years two and three 6.5% 100,000,000 Col. At the end of year five 11% Peso Value of New Company Today 2. Use the following estimated cash flows over the next five year based on the year(s) in which the cash flow is expected to be received and utilize the respective risk adjusted discount rates to estimate the value of New Company, an American MNC operating in several countries. Convert all cash flows to U.S. dollars (round to two decimal places). Cash Flow in Local Cash Flow in Year in which cash flow Risk Adj. PV of Cash Currency Dollars is expected Disc. Rate Flow 10,000,000 U.S. $10,000,000 Every year 5% 2,000,000 Aust. Next three years 6% 12,000,000 Quetzal After years four and five 10% 15,000,000 Euros After years two and three 6.5% 100,000,000 Col. At the end of year five 11% Peso Value of New Company Today

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