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2nd question what is the npv of the project drom the parent's company's perspective? 3rd ques. what is the correct course of action for the
2nd question what is the npv of the project drom the parent's company's perspective?
The next 3 questions are based on the following information. You wock for a firm whose home cuirency is the South Korean won (KRW) and that is considering a foreign investment. The investment yieids expected after-tax SWedish Krone (SEK) cach flows (in millions) as follows:-SEK486 in Year 0,and SEK205 in each of the 3 years of the life of the project: The expected rates of inflation in each country are constant per year. 7.50% in Korea, and 4.50% in Sweden. From the projects perspective the required return is 16.53% while from the parents perspective, the required rate of return is 9.50%. The spot exchange rate is KRW127. 62/SEK. What is the NPV of the groject from the project's perspective? a. KRW3,614.95 milion b. kRW3 77282 milion c. KRW9.895.36 milion d. KRW6,011, 89 mieson 1e. Nane of the options in this question are correct 3rd ques. what is the correct course of action for the manager of the firm?
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