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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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