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Assume that a firm's Foreign Direct Investment (FDI) strategy has a required rate of return of 20% p.a. The initial investment is $2,000,000, and the
Assume that a firm's Foreign Direct Investment (FDI) strategy has a required rate of return of 20% p.a. The initial investment is $2,000,000, and the firm expects end-of-year earnings of $1,250,000 each year for three years. What is the net present value (NPV) of the firm's FDI strategy? $633,102 $2,633,102 $2,962,963 $3,750,000 $1,750,000
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