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4 . A Canadian firm is evaluating an investment in Indonesia. The project costs 5 0 0 billion Indonesian Rupiah and is expected to produce
A Canadian firm is evaluating an investment in Indonesia. The project costs billion Indonesian Rupiah and is expected to produce an income of billion Indonesian Rupiah in a year in real terms for each of the next three years. The expected inflation rate in Indonesia is per year. And the firm estimates that an appropriate discount rate for the project would be about above the riskfree rate of interest. Calculate the net present value of the project in dollars. Assume a spot rate exchange rate of $ Rupiah. The interest rate is about in Indonesia and in Canada. Could you please show how to calculate this in excel?
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