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Lakonishok Equipment has an investment opportunity in Europe. The project costs 1 2 million and is expected to produce cash flows of 2 . 1
Lakonishok Equipment has an investment opportunity in Europe. The project costs million and is expected to produce cash flows of million in Year million in Year and million in Year The current spot exchange rate is $; and the current riskfree rate in the United States is percent, compared to that in Europe of percent. The appropriate discount rate for the project is estimated to be percent, the US cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated million.
What is the NPV of the project in US dollars? Do not round intermediate calculations and round your final answer to decimal places eg Enter your answer in dollars, not in millions eg
NPV $
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