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DejaVu Corp (DVC) is a Canadian company considering an investment in Yemen. The expected free cash flows from the Yemeni project are in Yemeni Rials
DejaVu Corp (DVC) is a Canadian company considering an investment in Yemen. The expected free cash flows from the Yemeni project are in Yemeni Rials and are uncorrelated to the spot exchange rate. The new project has similar risk to DVC's other projects. The overall WACC of DVC is 9%. If the risk free rate in Canada is 4% and the risk free rate in Yemen is 12%, what is the present value of the project in Rials? 5,969,680 Rials 6,034,334 Rials +27,557,000 Rials +50,370,410 Rials
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