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Assume that a firms Foreign Direct Investment (FDI) strategy has a required rate of return of 30% p.a. The initial investment is $2,000,000, and the
Assume that a firms Foreign Direct Investment (FDI) strategy has a required rate of return of 30% p.a. The initial investment is $2,000,000, and the firm expects end-of-year earnings of $1,100,000 each year for three years. What is the net present value (NPV) of the firms FDI strategy?
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