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Sandrine Machinery is a Swiss multinational manufacturing company. Currently, Sandrine's financial planners are considering undertaking a 1 - year project in the United States. The
Sandrine Machinery is a Swiss multinational manufacturing company. Currently, Sandrine's financial planners are considering undertaking a year project in the United States. The project's expected dollardenominated cash flows consist of an initial investment of $ and a cash inflow the following year of $ Sandrine estimates that its riskadjusted cost of capital is Currently, US dollar will buy Swiss franc. In addition, year riskfree securities in the United States are yielding while similar securities in Switzerland are yielding Do not round intermediate calculations. If this project was instead undertaken by a similar USbased company with the same riskadjusted cost of capital, what would be the net present value and rate of return generated by this project? Round your answers to two decimal places.
NPV $
Rate of return
What is the expected forward exchange rate year from now? Round your answer to two decimal places.
SF per US $
If Sandrine undertakes the project, what is the net present value and rate of return of the project for Sandrine? Do not round intermediate calculations. Round your answers to two decimal places.
NPV Swiss Francs
Rate of return
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