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A project in France yields a series of Euro cash flows as the following: Please solve for the project IRR in Euros (4 points) -600
A project in France yields a series of Euro cash flows as the following:
Please solve for the project IRR in Euros (4 points)
-600 euro 200 euro 500 euro 300 euro
0 1 2 3
Solve for the equivalent USD IRR. The exchange rate of Euro today is $1.25 per Euro. The inflation rate in the euro zone is p = 3%, the inflation rate in dollars is p$ = 6%. Assume that international fisher effect and purchasing power parity holds. (6 points)
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