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8) (4 pts) Suppose that in problem 5, the Thai Bhat unexpectedly strengthens against the US dollar over the next three years as follows: Year
8) (4 pts) Suppose that in problem 5, the Thai Bhat unexpectedly strengthens against the US dollar over the next three years as follows: Year 0 Year 1 Year 2 Year 3 $0.038 $0.039 $0.040 $0.041 Briefly describe whether the strengthening Thai Bhat will have a positive effect on NPV or an adverse effect on the NPV of the project as evaluated in problem 5? (You don't have to recalculate NPV unless you want to). 8) (4 pts) Suppose that in problem 5, the Thai Bhat unexpectedly strengthens against the US dollar over the next three years as follows: Year 0 Year 1 Year 2 Year 3 $0.038 $0.039 $0.040 $0.041 Briefly describe whether the strengthening Thai Bhat will have a positive effect on NPV or an adverse effect on the NPV of the project as evaluated in problem 5? (You don't have to recalculate NPV unless you want to)
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