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Problem 11 Intro Cohen Systems is a U.S. company that makes and sells medical testing equipment in the U.S. and Europe. The company is projecting
Problem 11 Intro Cohen Systems is a U.S. company that makes and sells medical testing equipment in the U.S. and Europe. The company is projecting the following cash flows and exchange rates for a project in Europe: Year 3 Cash flow ( million) -50 Exchange rate (S/) 1.17 1.148 1.126 1.104 The company expects a salvage value of 515 million at the end of year 3. The appropriate collar cost of capital is 14%. 0 1 2 15 15 10 Attempt 1/3 for 5 pts. Part 1 What is the dollar NPV of the project (in 9 million)? 1+ decimals Submit | Attempt 1/3 for 5 pts. Part 2 What is the break-even salvage value in S million)? 1+ decimals Submit Problem 11 Intro Cohen Systems is a U.S. company that makes and sells medical testing equipment in the U.S. and Europe. The company is projecting the following cash flows and exchange rates for a project in Europe: Year 3 Cash flow ( million) -50 Exchange rate (S/) 1.17 1.148 1.126 1.104 The company expects a salvage value of 515 million at the end of year 3. The appropriate collar cost of capital is 14%. 0 1 2 15 15 10 Attempt 1/3 for 5 pts. Part 1 What is the dollar NPV of the project (in 9 million)? 1+ decimals Submit | Attempt 1/3 for 5 pts. Part 2 What is the break-even salvage value in S million)? 1+ decimals Submit
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