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Sacramone Products Co, is a U.S.-based firm evaluating a project in Mexico. You have the following information about the project: - The project requires a
Sacramone Products Co, is a U.S.-based firm evaluating a project in Mexico. You have the following information about the project: - The project requires a 140,000 peso investment today and is expected to generate cash flows of 62,250 pesos at the end of the next three years. - The current U.S. exchange rate with the Mexican peso is 10.946 pesos per U.S. dollar, and the exchange rate is expected to remain constant. - The firm's WACC is 10%, and the project is of average risk. What is the dollar-denominated net present value (NPV) of this project? $1,285.06 $1,555.59 $1,352.69 $1,623.23
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