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An automobile manufacturing company in Country X is considering the construction and operation of a large plant on the eastern seaboard of the United States.

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An automobile manufacturing company in Country X is considering the construction and operation of a large plant on the eastern seaboard of the United States. Their MARR = 22% per year on a beforetax basis. (This is a market rate relative to their currency in Country X.) The study period used by the company for this type of investment is 8 years. The currency in Country X is the ZKron. It is estimated that the U.S. dollar will become weaker relative to the ZKron during the next 8 years. Specically, the dollar is estimated to be devalued at an average rate of 3.2% per year. The present exchange rate is 92 ZKrons per U.S. dollar. The estimated beforetax net cash ow (in U.S. dollars) is given in the table below. Based on a before-tax analysis, will this project meet the company's economic decision criterion? 0 - 194,000,000 1 - 33,000,000 2 76,000,000 8 76,000,000 E) The PW of net cash ows is $ -34.35 million, thus the project will not meet the company's economic decision criteria. (Round to two decimal places.)

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