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uYour company is looking at a new project in Mexico. The project will cost 9 million pesos. The cash flows are expected to be 2.25
uYour company is looking at a new project in Mexico. The project will cost 9 million pesos. The cash flows are expected to be 2.25 million pesos per year for 5 years. The current spot exchange rate is 9.08 pesos per Canadian dollar. The risk-free rate in the Canada is 4% and the risk-free rate in Mexico 8%. The dollar required return is 15%.
uShould the company make the investment?
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