Question
A US-based manufacturer is considering an international investment opportunity that will produce the following cash flows in EUR. The current spot rate is USD 1.50
A US-based manufacturer is considering an international investment opportunity that will produce the following cash flows in EUR. The current spot rate is USD 1.50 / EUR. What is the NPV in USD of this project if the required rate of return is 8 percent in USD and 10 percent in EUR?
| Year CF (EUR) | CF (EUR) |
| 0 | 65,000 |
| 1 | 150,000 |
| 2 | 150,000 |
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Intermediate Financial Theory
Authors: Jean-Pierre Danthine, John B. Donaldson
3rd Edition
0123865492, 9780123865496
