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There is a project in DreamLand that an American-based tompany would like to invest in. - The project would require DDD702,000 as initial investment. -
There is a project in DreamLand that an American-based tompany would like to invest in. - The project would require DDD702,000 as initial investment. - It is also estimated to generate cash inflows equal to DDD321,000 a year for the next 4 years. - After that, the project will be worthless. - The current spot exchange rate equals DDD1 =$3.4567. - The risk-free rate in DreamLand is 3%, and it is 5% in the U.S.A. - The applicable rate of return for projects in DreamLand similar to this one is 12%. Calculate the Net Present Value of this project in DreamLand's currency (i.e., in "DDD")
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