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Assume that the euro/dollar exchange rate is 1 $1.50. If it costs $30 to buy a European product, the stated price of the product would
Assume that the euro/dollar exchange rate is 1 $1.50. If it costs $30 to buy a European product, the stated price of the product would be 45. True False QUESTION 2 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 $2,962,963 $1,750,000 $2,633,102 $3,750,000
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