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(Related to Checkpoint 19.3) (International capital budgeting) Assume you are working for a firm based in the United States that is considering a new project

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(Related to Checkpoint 19.3) (International capital budgeting) Assume you are working for a firm based in the United States that is considering a new project in the country of Tambivia. This new project will produce the following cash flows, measured in TABs (the currency of Tambivia), which are expected to be repatriated to the parent company in the United States. In addition, assume the risk-free rate in the United States is 7 percent, and that this project is riskier than most and, as such, the firm has determined that it should require a premium of 9 percet over the risk-free rate. Thus, the appropriate discount rate for this project is 16 percnet. In addition, the current spot exchange rate is 0.8658TAB/S, and the one-year forward exchange rate is 0.8313TAB/S. What is the project's NPV? The project's NPV is s million. (Round to two decimal places) Data Table 1 D Year Cash Flow (in millions of TABs) - 16 ON 3 | 4 Print Done Enter your answer in the answer box and then click Check Answer. ? All parts showing Clear All Check Answer (Related to Checkpoint 19.3) (International capital budgeting) Assume you are working for a firm based in the United States that is considering a new project in the country of Tambivia. This new project will produce the following cash flows. B measured in TABs (the currency of Tambivia), which are expected to be repatriated to the parent company in the United States. In addition, assume the risk-free rate in the United States is 7 percent, and that this project is riskier than most and, as such, the firm has determined that it should require a premium of 9 percet over the risk-free rate. Thus, the appropriate discount rate for this project is 16 percnet. In addition, the current spot exchange rate is 0.8658TAB/S, and the one-year forward exchange rate is 0.8313TAB/S. What is the project's NPV? The project's NPV is 8 million (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check

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