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U Question 17 A project that costs Sfr 2,000,000 today is expected to generate after-tax cash flows of Sfr1,000,000 for the next three years. The
U Question 17 A project that costs Sfr 2,000,000 today is expected to generate after-tax cash flows of Sfr1,000,000 for the next three years. The spot me is $1.25/Sfr, Swiss franc bonds have a yield of 5%, and the Swiss cost of capital is 18%. What is the NPV in Swiss francs for this project? Select What is the NPV in dollars for this project? Select] Consider the following new information and recalculate the NPV incorporating this information: Because of government restrictions, the earnings cannot be repatriated until the end of the project (end of year 3). Assume you invest in Swiss franc bonds over the life of the project. What is the NPV in Swiss francs now? Select ! -Str6291 -Str14,458 Sfr67,875 Str54,975
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