The current exchange rate is MXN17.19 and the exchange rates over the life of the project are expected to fluctuate. Predict the exchange rates over the next three years (come up with your own values). The firm's cost of capital is 12%. The required rate of return on this project is 16%. All cash flows are remitted back to the parent at the end of each year. What is the amount of US dollars that will be remitted to the parent company each year using the exchange rates you have predicted? Which rate should be used to discount the cash flows? Calculate the present values of the remitted cash flows. What is the NPV of the project? Calculate the project's break-even salvage value Should the project be accepted?

The current exchange rate is MXN17.19 and the exchange rates over the life of the project are expected to fluctuate. Predict the exchange rates over the next three years (come up with your own values). The firm's cost of capital is 12%. The required rate of return on this project is 16%. All cash flows are remitted back to the parent at the end of each year. What is the amount of US dollars that will be remitted to the parent company each year using the exchange rates you have predicted? Which rate should be used to discount the cash flows? Calculate the present values of the remitted cash flows. What is the NPV of the project? Calculate the project's break-even salvage value Should the project be accepted