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A financial manager has determined that the appropriate discount rate for a foreign project is 14 percent. however that disocunt rate applies in the US
A financial manager has determined that the appropriate discount rate for a foreign project is 14 percent. however that disocunt rate applies in the US using dollars. What disocunt rate should be used in the foreign country using the foreign currency? The inflation rate in the US and in the foreign country is expected to be 4 percent and 7 percent, respectivly.
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