Question
Understand the basic algebra of NPVs from points of local (subsidiary) and home (parent). Recipe 1: Find the NPV in the local currency based on
Understand the basic algebra of NPVs from points of local (subsidiary) and home (parent).
Recipe 1: Find the NPV in the local currency based on the expected CFs in local currency with discount rate in local currency. Then, convert the NPV into the home currency by using the current spot rate.
How would I go about doing this?
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
