Question
Misaka Corp. has investments in Country C and Country D. The expected cash flows for years 2 and 3 are given below, as well as
Misaka Corp. has investments in Country C and Country D. The expected cash flows for years 2 and 3 are given below, as well as the expected exchange rates. Misakas rate of return is 12%.
a.)Calculate the current value of the cash flows from Year 2.
b.) Calculate the current value of the cash flows from Year 3.
| Country C Cash Flow in CRC | Country C Exchange Rate | Country D Cash Flow in CRD | Country D Exchange Rate | |
| Year 2 | 130,000 | $0.660 / CRC | 860,000 | $0.085 /CRD |
| Year 3 | 165,00 | $0.680/ CRC | 680,000 | $0.0082 /CRD |
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
