Question
Assume that you have analyzed a project in Indian Rupees (expected inflation rate is 2%) and arrived at a net present value of Rs 1
Assume that you have analyzed a project in Indian Rupees (expected inflation rate is 2%) and arrived at a net present value of Rs 1 billion. If you do your analysis entirely in US dollars (expected inflation rate is 5%) which of the following would you expect to happen to the numbers in your analysis? Select one: a. Your growth rate will be higher and your cost of capital will be higher b. Your growth rate will be higher and your cost of capital will be lower c. Your growth rate and cost of capital will be unchanged. d. Your growth rate will be lower and your cost of capital will be lower e. Your growth rate will be lower and your cost of capital will be higher
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