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4. (12 points) Let's say you are a U.S. company buying a machine from a European company. Your money is in dollars. The price
4. (12 points) Let's say you are a U.S. company buying a machine from a European company. Your money is in dollars. The price of the machine is 85,000 Euros. You wait 6 months to buy it and during this time the currency exchange rate goes from $1.21 = 1 Euro to $1.311 Euro. Does this change in currency rate make the project more or less attractive as an investment for the U.S. company?
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
10th Edition
B010IKDQZM
