QUESTION 15 AA Company, a U.S. MNC is contemplating making a foreign capital expenditure in Croatia. The initial cost of the projects EUR 0.00 year economic life of the project in EUR are estimated to be 6,000,7.000,0,000,9,000 and 8,000. The parent company's con el cas is forecasted to be 1% per annum in the U.S. and 2% in Croatia. The current spot rate is EURUSD = 109. Determine the following things Calculating the NPV in EUR and then converting to USD at the current spot rate The NPV in EUR is 2,030. The NPV in USD is 1,661. The NPV in EUR is 2,040. The NPV in USD is 1,761. The NPV in EUR is 2.050. The NPV in USD is 1,881. QUESTION 16 See Question 15 above for details Calculating the NPV at the dollar cost of capital. $1,881 $1,681 $1,581 QUESTION 17 See Question 15 above for details Are the two dollar NPV different or the same? Same Different More information is needed ON 18 See Question 15 above for details What is the NPV in dollars if the actual pattern of EUR/USD exchange rate is: Year 0: EUR/USD = 1.09 Year 1 : EUR/USD = 1.17 Year 2: EUR/USD = 1.21 Year 3: EUR/USD = 1.28 Year 4: EUR/USD = 1.30 Year 5: EUR/USD = 1.32 -$1,351 $1,251 -$1,451 QUESTION 15 AA Company, a U.S. MNC is contemplating making a foreign capital expenditure in Croatia. The initial cost of the projects EUR 0.00 year economic life of the project in EUR are estimated to be 6,000,7.000,0,000,9,000 and 8,000. The parent company's con el cas is forecasted to be 1% per annum in the U.S. and 2% in Croatia. The current spot rate is EURUSD = 109. Determine the following things Calculating the NPV in EUR and then converting to USD at the current spot rate The NPV in EUR is 2,030. The NPV in USD is 1,661. The NPV in EUR is 2,040. The NPV in USD is 1,761. The NPV in EUR is 2.050. The NPV in USD is 1,881. QUESTION 16 See Question 15 above for details Calculating the NPV at the dollar cost of capital. $1,881 $1,681 $1,581 QUESTION 17 See Question 15 above for details Are the two dollar NPV different or the same? Same Different More information is needed ON 18 See Question 15 above for details What is the NPV in dollars if the actual pattern of EUR/USD exchange rate is: Year 0: EUR/USD = 1.09 Year 1 : EUR/USD = 1.17 Year 2: EUR/USD = 1.21 Year 3: EUR/USD = 1.28 Year 4: EUR/USD = 1.30 Year 5: EUR/USD = 1.32 -$1,351 $1,251 -$1,451