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There is a project in HappyLand that an American-based company would like to invest in. - The project would require HHH754,000 as initial investment. -
There is a project in HappyLand that an American-based company would like to invest in. - The project would require HHH754,000 as initial investment. - It is also estimated to generate cash inflows equal to HHH371,000 a year for the next 4 years. - After that, the project will be worthless. - The current spot exchange rate equals HHH1=$3.4567. - The risk-free rate in HappyLand is 5%, and it is 3% in the U.S.A. - The applicable rate of return for projects in HappyLand similar to this one is 13%. Calculate the Net Present Value of this project in HappyLand's currency (i.e., in "HHH"). Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher, and o round your final answer to TWO decimal places: for example, 10,000.23. Do NOT use "currency units" in your answer. HINT: You won't need to use all the numbers that are given
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