7:51 coursehero.com/qa/wait +.11 24% :D Argentina Brazil Chile Free Cash Flows in U.S. Dollars 1997 1998 $6,930 $7,117 1999 2000 $7,331 $7,617 $10,920 $3,150 $11,215 $11,551 $12,002 2001 $7,990 $12,591 2002 $8,462 $13,334 2003 2004 $8,816 $9,169 $13,893 $14,448 $3,235 $3,332 $3,462 $3,632 $3,846 $4,007 $4,168 Note on the estimation of U.S. dollar cash flows: Cash flows were translated from local currency to U.S. dollars in the following manner: 1. Cash flows are projected in nominal local currency, taking inflation into account. 2. A forecast of the exchange rate (the forward rate) between the dollar and local currency was based on interest rate parity, which assumes that the exchange rate reflects differences in the inflation rate between the two countries. 3. Cash flows were then converted to U.S. dollars using the estimated exchange rate for each period. Doit Can PAG mar Lect Lect Lect Lect Lect Lect Lect PAG PAG ifm + v file:///C:/Users/akayl/Downloads/PAGINAS%20AMERALS%20(1).pdf 4 of 9 < > Options 1551 1555 1533 LUUU LUUT LUVE 2533 LUUT Argentina Brazil 1.7% 2.5% 4.0% 4.5% 5,5% 5.5% 5.5% 5.5% 6.9% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Chile 6.5% 6.1% 5.8% 5.5% 5.0% 5.0% 5.0% 5.0% United States 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% *(Case writer's estimate) Spot Exchange Rates and Forward Exchange Rates (Local Currency: U.S. Dollar) Jul-96 1997 1998 1999 2000 2001 2002 2003 2004 Argentine peso 1.000 0.987 0.983 0.992 1.007 1.031 1.056 1.082 1.108 Brazilian real 1.012 1.050 1.081 1.112 1.145 1.178 1.212 1.248 1.284 Chilean peso 410.73 424.69 437.47 449.36 460.27 469,21 478.32 487.60 497.07 Argentina Brazil Chile Free Cash Flows in U.S. Dollars 1997 1998 1999 $6,930 $7,117 $7,331 $10,920 $11,215 $11,551 $3,150 $3,235 $3,332 2000 2001 2002 2003 2004 $7,617 $7,990 $8,462 $8,816 $9,169 $12,002 $12,591 $13,334 $13,893 $14,448 $3,462 $3,632 $3,846 $4,007 $4,168 Note on the estimation of U.S. dollar cash flows: Cash flows were translated from local currency to U.S. dollars in the following manner: 1. Cash flows are projected in nominal local currency, taking inflation into account. 2. A forecast of the exchange rate (the forward rate) between the dollar and local currency was based on interest rate parity, which assumes that the exchange rate reflects differences in the inflation rate between the two countries. 3. Cash flows were then converted to U.S. dollars using the estimated exchange rate for each period. search | Didzi $10,520 $12,991 $13,334 $15,055 14,440 Chile $3,150 $3.235 $3,332 $3,462 $3,632 $3,846 $4.007 $4,168 ch 4 creenshot (319).png