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The project requires an investment of AU$800,000 today and is expected to generate cash flows of AU$900,000 at the end of each of the next
The project requires an investment of AU$800,000 today and is expected to generate cash flows of AU$900,000 at the end of each of the next two years.\ The current exchange rate of the U.S. dollar against the Australian dollar is $0.7823 per Australian dollar (AU$).\ The one-year forward exchange rate is $0.8102/AU$, and the two-year forward exchange rate is $0.8412/AU$.\ The firms weighted average cost of capital (WACC) is 9%, and the project is of average risk.
The project requires an investment of AU$800,000 today and is expected to generate cash flows of AU$900,000 at the end of each of the next two years.\ The current exchange rate of the U.S. dollar against the Australian dollar is $0.7823 per Australian dollar (AU$).\ The one-year forward exchange rate is $0.8102/AU$, and the two-year forward exchange rate is $0.8412/AU$.\ The firms weighted average cost of capital (WACC) is 9%, and the project is of average risk.
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