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Example: A US firm expects cash flows of $100,000 from its local business and 1,000,000 Mexican Pesos from its business in Mexico at the end

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Example: A US firm expects cash flows of $100,000 from its local business and 1,000,000 Mexican Pesos from its business in Mexico at the end of 2017. Assume that the peso's value is expected to be $.055/Peso. What is the E[FCF] for the end of 2017? Further assume that the US firm expects constant growth of 4% and the overall WACC is 10%. Assume the company's WACC in the US is 8% and the company's WACC in Mexico is 17.5%. Calculate the value (VO) of the firm. FCFNE, FCF, XER, FCE, MINE Van (+WACG

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