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Use the following the answer the next two questions. ABC corporation (US firm) is evaluating a project with the following expected cash flows and discount
Use the following the answer the next two questions. ABC corporation (US firm) is evaluating a project with the following expected cash flows and discount rate(K): Year o Year 1 Year 2 Year 3 Year 4 K= .10 K=.12 Kr. 15 K=.18 Dollars -100,000 100,000 150,000 200,000 -100,000 Euros -400,000 120,000 300,000 -100,000 80,000 130,000 Pounds -200,000 -80,000 150.000 90,000 Exchange rates over this four year period are as follows: Exchange Rate Year 0 Year 1 Euros 2 USD/E 1.5 USD/E Year 2 Year 3 Year 4 1.75 USD/E 2.5 USD/E 2 USD/E Pounds 1.8 USD/BP 1.6 USD/BP 1.85 USD/BP 2.2 USD/BP 1.9 USD/BP Find the initial outlay (year 0 cost) in dollars for the project. Round intermediate steps and your final answer to four decimals. Do not use the dollar sign when entering your answer and enter the cost as a positive number
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