Question
Newport Cruises is looking at a new project in Peru. The project will cost 10 million sols. The cash flows are expected to be 3.00
Newport Cruises is looking at a new project in Peru. The project will cost 10 million sols.
The cash flows are expected to be 3.00 million sols per year for 6 years. The current spot exchange rate is 3.5 sols per dollar.
The risk-free rate in the US is 2.93, and the risk-free rate in Peru 6.15. The dollar required return on the project is 13.8 %.
What is the required rate of return in Peruvian sols?
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
9th Edition
0618938737, 978-0618938735
