Question 24 Not yet answered Marked out of 10.00 P Flag question Consider the cash flows of the following international investment opportunity: Year 0 Year 1 Year 2 -64,000 160,000 -100,000 It involves a gold mine that can be opened at a cost, then produces a positive cash flow, but then requires environmental clean-up. The current exchange rate is $1.60 = 1.00. The inflation rate in the U.S. is 6%, and the inflation in the euro zone is 2%. The appropriate cost of capital to a U.S.-based firm for a domestic project of similar risk is 8%. Calculate the dollar-denominated NPV of this project. 1 A B I E