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Understand the basic algebra of NPVs from points of local (subsidiary) and home (parent). Recipe 2. Find the expected CFs in home currency - must

Understand the basic algebra of NPVs from points of local (subsidiary) and home (parent).

Recipe 2. Find the expected CFs in home currency - must convert each CF from local to home by using the expected FX rates. Then, find NPV in home currency given the domestic discount rate.

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