If the corporation has decided to hedge its cash flow of CHF 2,000,000 each year with the forward rate of $1.18/CHF, unhedged cash flow will be exchanged based on the expected spot rates as follow:

Year 1: $1.10/CHF

Year 2: $1.07/CHF

Year 3: $1.12/CHF

Year 4: $1.11/CHF

Year 5: $1.10/CHF

What is the net present value of this investment?

Hedge Cashf Flow of CHF 2,000,000 per year. Enter Forward rate of $1.18 1.18 $ $ $ 1.18 $ 1.10 $ 1.18 $ 1.07 $ 1.18 $ 1.12 $ 1.18 1.10 1.11 $ Remitted after withhlding tax Hedged Cash Flows Unhedged cash flows Salvage Value Forward Rate Expected future spot rate Hedged cash flows to parent Unhedged cash flows to parent Total cash flow to parent Present Value of parent cash flow (13%) Initial Investment by parent Cummulative NPV Hedge Cashf Flow of CHF 2,000,000 per year. Enter Forward rate of $1.18 1.18 $ $ $ 1.18 $ 1.10 $ 1.18 $ 1.07 $ 1.18 $ 1.12 $ 1.18 1.10 1.11 $ Remitted after withhlding tax Hedged Cash Flows Unhedged cash flows Salvage Value Forward Rate Expected future spot rate Hedged cash flows to parent Unhedged cash flows to parent Total cash flow to parent Present Value of parent cash flow (13%) Initial Investment by parent Cummulative NPV