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please do not anwser if you are unsure. i have had 5 incorrect anwsers so far Lakonishok Equipment has an investment opportunity in Europe. The
please do not anwser if you are unsure. i have had 5 incorrect anwsers so far
Lakonishok Equipment has an investment opportunity in Europe. The project costs 615,250,000 and is expected to produce cash flows of 63,850,000 in Year 1 , 4,850,000 in Year 2, and 65,250,000 in Year 3, The current spot exchange rate is $.78/6 and the current risk-free rate in the United States is 2.6 percent compared to that in euroland of 2.2 percent. The appropriate discount rate for the project is estimated to be 12 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated 69,750,000 What is the NPV of the project in U.S. dollars? (Do not round intermediate colculations and enter your answer in dollars, not in millions of dollors, rounded to 2 decimal places, e.g., 1,234,567.89.) Step by Step Solution
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