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Calculate the net present value (NPV) for the multinational firm, assuming that the exchange rate is $1/ today and $0.5/ a year later. Note that
Calculate the net present value (NPV) for the multinational firm, assuming that the exchange rate is $1/ today and $0.5/ a year later. Note that we have to exchange the euros for US dollars before calculating NPV for the multinational firm. Multinational firm WACCW = 5% Worldwide cash flow at time 0 CFO,w = -2,000 Worldwide cash flow a year later CF1,W = 3,000 0 +$300 O +$600 0-$300 0-$572
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