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The next 3 questions are based on the following information. return is 17.74%, while from the parent's perspective, the required rate of return is 8%.
The next 3 questions are based on the following information. return is 17.74%, while from the parent's perspective, the required rate of return is 8%. The spot exchange rate is JPY19.25/DKK. What is the NPV of the project from the project's perspective? a. -DKK0.602 million b. -DKK222.898 million c. -DKK672.608 million d. DKK62.708 million e. None of the options in this question are correct. What is the NPV of the project from the parent company's perspective? a. JPY672.608 million b. JPY7,410.108million c. JPY777.864 million d. JPY895.505 million e. None of the options in this question are correct. What is the correct course of action for the managers of the firm? a. Accept the project. c. Reject the project. It is only adding value from the parent's perspective because of forecast favourable movements in the exchange rate. d. Reject the project. It is not financially viable from both the project's perspective and the parent's perspective. e. There is not enough information to infer the correct course of action
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