With our understanding of foreign exchange markets and the methods to forecast future spot rates, determine the values for S_tthat will apply to all items in the APV model in years 0 to 10. Enter these rates in your Excel spreadsheet model and submit to the assignment drop box below. In your spreadsheet, write a justification for your selection of these rates.

model.

Alternate version of the APV model

APV=t=1TStOCFt(1-)(1+kud)t+t=1TStDt(1+id)t+t=1TStIt(1+id)t+STTVT(1+Kud)T-S0C0+S0RF0+S0CL0-t=1TStLPt(1+id)tAPV=\overset { T }{ \underset { t=1 }{ \Sigma } } \cfrac { \overline { { S }_{ t } } OCF_{ t }(1-\tau ) }{ (1+{ k }_{ ud })^{ t } } +\overset { T }{ \underset { t=1 }{ \Sigma } } \cfrac { \overline { { S }_{ t } } \tau D_{ t } }{ (1+{ i }_{ d })^{ t } } +\overset { T }{ \underset { t=1 }{ \Sigma } } \cfrac { \overline { { S }_{ t } } \tau I_{ t } }{ (1+{ i }_{ d })^{ t } } +\cfrac { \overline { { S }_{ T } } TV_{ T } }{ (1+{ K }_{ ud })^{ T } } -{ S }_{ 0 }{ C }_{ 0 }+{ S }_{ 0 }RF_{ 0 }+{ S }_{ 0 }CL_{ 0 }-\overset { T }{ \underset { t=1 }{ \Sigma } } \cfrac { \overline { { S }_{ t } } LP_{ t } }{ (1+{ i }_{ d })^{ t } }