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I am looking for the formulas to be able to solve this practice problem in Excel, thank you! Foreign capital budgeting Initial investment (U.S. Dollars)
I am looking for the formulas to be able to solve this practice problem in Excel, thank you!
Foreign capital budgeting | |||
Initial investment (U.S. Dollars) | $2,000 | ||
Year 1 Inflow (U.S. Dollars) | $2,400 | ||
Risk-adjusted cost of capital | 12.00% | ||
Spot rate, Number Swiss francs per U.S. Dollar | 0.8 | ||
Yield, 1-yr. U.S. securities | 6.75% | ||
Yield, 1-yr. Swiss securities | 4.50% | ||
Formulas | |||
U.S. NPV | #N/A | ||
U.S. rate of return | #N/A | ||
1-yr. forward rate, Swiss francs per U.S. Dollar | #N/A | ||
Initial investment (Swiss francs) | #N/A | ||
Year 1 Inflow (Swiss francs) | #N/A | ||
NPV (Swiss francs) | #N/A | ||
Swiss rate of return | #N/A |
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