A U.S. company is considering a high technology project in a foreign country. The estimated economic results for the project?(after taxes), in the foreign currency?(T-marks), is shown in the following table for the?seven-year analysis period being used. The company requires an

20?%

rate of return in U.S. dollars?(after taxes) on any investments in this foreign country.

a. Should the project be?approved, based on a PW analysis in U.S.?dollars, if the devaluation of the?T-mark, relative to the U.S.?dollar, is estimated to average 15?% per year and the present exchange rate is 21 T-marks per?dollar?

The PW of the project is ?(Round to the nearest?dollar.)

Should the project be?approved? Choose the correct answer below.

No

Yes

b. What is the IRR of the project in?T-marks?

The IRR of the project in terms of?T-marks is ?(Round to one decimal?place.)

c. Based on your answer to?(b), what is the IRR in U.S.?dollars?

The IRR in terms of U.S. dollars is ?(Round to one decimal?place.)

A U.S. company is considering a high technology project in a foreign country. The estimated economic results for the project (after taxes), in the foreign currency (T-marks), is shown in the following table for the seven-year analysis period being used. The company requires an 20% rate of return in U.S. dollars (after taxes) on any investments in this foreign country. Click the icon to view the estimated economic results for the project. Click the icon to view the interest and annuity table for discrete compounding when / = 20% per year. a. Should the project be approved, based on a PW analysis in U.S. dollars, if the devaluation of the T-mark, relative to the U.S. dollar, is estimated to average 15% per year and the present exchange rate is 21 T-marks per dollar? The PW of the project is $ . (Round to the nearest dollar.) Should the project be approved? Choose the correct answer below. O O Yes b. What is the IRR of the project in T-marks? The IRR of the project in terms of T-marks is |%. (Round to one decimal place.) c. Based on your answer to (b), what is the IRR in U.S. dollars? The IRR in terms of U.S. dollars is %. (Round to one decimal place.)H Data Table X End of Year Cash Flow (T-marks after Taxes) - 3,600,000 450,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 Print Donei More Info X Discrete Compounding; i =20% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N F/P P/F F/A P/A A/F A/P 1.2000 0.8333 1.0000 0.8333 1.0000 1.2000 1.4400 0.6944 2.2000 1.5278 0.4545 0.6545 1.7280 0.5787 3.6400 2.1065 0.2747 0.4747 2.0736 0.4823 5.3680 2.5887 0.1863 0.3863 2.4883 0.4019 7.4416 2.9906 0.1344 0.3344 2.9860 0.3349 9.9299 3.3255 0.1007 0.3007 3.5832 0.2791 12.9159 3.6046 0.0774 0.2774 4.2998 0.2326 16.4991 3.8372 0.0606 0.2606 5.1598 0. 1938 20.7989 4.0310 0.0481 0.2481 10 6.1917 0.1615 25.9587 4.1925 0.0385 0.2385 11 7.4301 0.1346 32.1504 4.3271 0.0311 0.2311 12 8.9161 0.1122 39.5805 4.4392 0.0253 0.2253 13 10.6993 0.0935 48.4966 4.5327 0.0206 0.2206 14 12.8392 0.0779 59.1959 4.6106 0.0169 0.2169 15 15.4070 0.0649 72.0351 4.6755 0.0139 0.2139 16 18.4884 0.0541 87.4421 4.7296 0.0114 0.2114 17 22.1861 0.0451 105.9306 4.7746 0.0094 0.2094 18 26.6233 0.0376 128.1167 4.8122 0.0078 0.2078 19 31.9480 0.0313 154.7400 4.8435 0.0065 0.2065 20 38.3376 0.0261 186.6880 4.8696 0.0054 0.2054 Print Done