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solve on an excel sheet and post it. thank you C3 3.3 20 C4 10 65 5 Rio, Inc., is proposing to construct a new
solve on an excel sheet and post it. thank you
C3 3.3 20 C4 10 65 5 Rio, Inc., is proposing to construct a new healthcare facilities in a country facing population aging issues. The two prime candidates are China and Japan. The forecasted cash flows from the proposed plants are as follows: Co C1 C2 China (Billions of RMB) -5 1.5 2.4 Japan (Billions of JPY) -65 10 14 The spot exchange rate for RMB is 1USD=6.75 RMB while the rate for Japaness Yen is 1USD=103JPY. The interest rate is 4% in the United States, 3% in Japan, and 5% in China. The financial manager has suggested that, if the cash flows were stated in dollars, a return in excess of 8% would be acceptable. A. Calculate the NPV in dollars for the facility in China. B. Calculate the NPV in dollars for the facility in Japan. C3 3.3 20 C4 10 65 5 Rio, Inc., is proposing to construct a new healthcare facilities in a country facing population aging issues. The two prime candidates are China and Japan. The forecasted cash flows from the proposed plants are as follows: Co C1 C2 China (Billions of RMB) -5 1.5 2.4 Japan (Billions of JPY) -65 10 14 The spot exchange rate for RMB is 1USD=6.75 RMB while the rate for Japaness Yen is 1USD=103JPY. The interest rate is 4% in the United States, 3% in Japan, and 5% in China. The financial manager has suggested that, if the cash flows were stated in dollars, a return in excess of 8% would be acceptable. A. Calculate the NPV in dollars for the facility in China. B. Calculate the NPV in dollars for the facility in JapanStep by Step Solution
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