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Following cash flows are related to a project in Euro-zone: CF at time 0= -25000 CF at time 1= 60000 CF at time 2= -36000

Following cash flows are related to a project in Euro-zone:

CF at time 0= -25000

CF at time 1= 60000

CF at time 2= -36000

CF at time 3= 100

The current exchange rate is $1.55 = 1.00. The inflation rate in the U.S. is 6 percent and in the euro zone 2 percent. The appropriate cost of capital to a U.S.-based firm for a domestic project of this risk is 7 percent. Find the dollar cash flows to compute the dollar-denominated NPV of this project.

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