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All American Inc. is considering an intemational investment opportunity in Japan that is similar to the company's own risk. The investment will generate the following
All American Inc. is considering an intemational investment opportunity in Japan that is similar to the company's own risk. The investment will generate the following cash flows:
Year0 | Year1 | Year2 | Year3 | Year4 |
-50,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 |
The current exchange rate is 90/$. Assume that interest rates are 2% in Japan and 3% in the U.S. All American's ($) weighted average cost of capital is 10%. What is the $ NPV of this project?
A. $165,457 B. $14,891,171 C. $13,397,309 D. $132,724
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