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Amman Company has a unique opportunity to invest in a two-year project in Singapore. The project is expected to generate 1,000,000 Singapore dollars (s$) in
Amman Company has a unique opportunity to invest in a two-year project in Singapore. The project is expected to generate 1,000,000 Singapore dollars (s$) in the first year and 2,000,000 Singapore dollars in the second. Amman would have to invest $500,000 in the project. Amman has determined that the cost of capital for similar projects is 14%. What is the net present value of this project if the spot rate of the Singapore dollar for the two years is forecasted to be $.50 and $.40, respectively? Select one: O a. $716,634 O b.-$94,183 O c. -$283,366 O d. none of the above 6:53
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