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(in millions) as follows: Expected inflation is 5.0% in the Australian dollar and 9.0% in the Danish krone. Assume that the international parity conditions hold.
(in millions) as follows: Expected inflation is 5.0% in the Australian dollar and 9.0% in the Danish krone. Assume that the international parity conditions hold. Required returns for projects in this risk class are: - For AUD: 17.0\% in Australian dollar; and - For DKK: 21.457\% in Danish krone The spot exchange rate is S0AUD/DKK= AUD 0.2419/DKK. same marginal tax rate that your firm pays on its parent company profits in Australian dollar. Factoring in the opportunity cost of the blocked funds, what is the NPV of Funky Turtle's project? a. The NPV from the project's perspective is -AUD 65.44 million b. The NPV from the project's perspective is -AUD 63.04 million c. The NPV from the project's perspective is -AUD 59.41 million d. The NPV from the project's perspective is -AUD 61.92 million e. The NPV from the project's perspective is -AUD 63.69 million
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