Question
XYZ, which is an American company, is considering a project that has cash flows denominated in Canadian dollars. The following table shows estimated cash flows
XYZ, which is an American company, is considering a project that has cash flows denominated in Canadian dollars. The following table shows estimated cash flows and exchange rates over the next two years.
| Year | CF(Canadian Dollars) | Exchange Rate |
| 0 | -40,000 | 2.5USD/CD |
| 1 | 30,000 | 1.5USD/CD |
| 2 | 80,000 | 1.2USD/CD |
Find the NPV of the project in terms of USD. Assume the discount rate is 15%. Do not use the dollar sign when entering your response. Round your final answer to the nearest dollar.
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College Physics
Authors: Jerry D. Wilson, Anthony J. Buffa, Bo Lou
7th edition
9780321571113, 321601831, 978-0321601834
