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financial management ch 19 hw please show work, thank you. question 9 (Related to Checkpoint 19.3) (International capital budgeting) An American firm is considering a
financial management ch 19 hw
please show work, thank you.
question 9
(Related to Checkpoint 19.3) (International capital budgeting) An American firm is considering a new project in the country of Geeblaistan. This new project will produce the following cash flows,__, measured in BLAs, the currency of Geeblaistan, which are expected to be repatriated to the parent company in the United States. In addition, assume the risk-free rate in the United States is 4 percent, and that this project is riskier than most and, as such, the firm has determined that it should require a premium of 14 percent over the risk-free rate. Thus, the appropriate discount rate for this project is 18 percent. In addition, the current spot exchange rate is 0.9000BLA/$, and the 1-year forward exchange rate is 0.9300BLA/$. What is the project's NPV? The project's NPV is $ million. (Round to two decimals places.) Data table (Click on the icon in order to copy its contents into a spreadsheet.)
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