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I am taking finance first time so please explain the calculation and answer step by step. Thank you! 16. Suppose we have the exchange rates.

I am taking finance first time so please explain the calculation and answer step by step. Thank you!
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16. Suppose we have the "exchange rates". =0.90, 2=0.85, nge rates" are used in the following way to find the Net Present Value of cashflows: NPo 1) Compute the interest rate r between t-0 and t+2, implied in the "exchange rate" What is the Net Present Value of a project requiring a current investment of $10MM with cashflows of $5MM at t 1 and $7MM at t-2? Suppose a buyer wishes to purchase this project but pay for it 1 year from now. How much should you ask for? 2) 3) 16-1 A. r=8.4 ra 17.6% C.11.11% D. r=8.82% E. cannot be determined 16-2 (A. $0.45M C. $22.0MM D. $0.70MM A. $0.45MM C.$7.0 M 016-3 D. $0.53MM

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