You are analyzing a potential $3-$year investment in France. It will require an investment of

$2000$ and is forecasted to yield cash flows of $2000$ for the next $3$ years. The spot is $1\mathrm{.}2/$$$.$

The U$.$S inflation rate is $5\%,$ the euro inflation rate is $10\%.$ Your estimated WACC is $15\%.$

What is the NPV in dollars?

a$)$ $$1529$

b$)$ $$1818$

c$)$ $$2137$

d$)$ $$2566$

$22.$ You are analyzing a potential $3-$year investment in France. It will require an investment of

$2000$ and is forecasted to yield cash flows of $2000$ for the next $3$ years. The spot is $1\mathrm{.}2/$$$.$

The U$.$S inflation rate is $5\%,$ the euro inflation rate is $10\%.$ Your estimated WACC is $15\%.$

What is the euro discount rate?

a$)\mathrm{.}10$

b$)\mathrm{.}15$

c$)\mathrm{.}20$

d$)\mathrm{.}25$

$23.$ You are analyzing a potential $3-$year investment in France. It will require an investment of

$2000$ and is forecasted to yield cash flows of $2000$ for the next $3$ years. The spot is $1\mathrm{.}2/$$$.$

The U$.$S inflation rate is $5\%,$ the euro inflation rate is $10\%.$ Your estimated WACC is $15\%.$

What is the NPV in euros?

a$)1529$

b$)1818$

c$)2182$

d$)2566$

$24.$ You are analyzing a potential $3-$year investment in France. It will require an investment of

$2000$ and is forecasted to yield cash flows of $2000$ for the next $3$ years. The spot is $1\mathrm{.}2/$$$.$

The U$.$S inflation rate is $5\%,$ the euro inflation rate is $10\%.$ Your estimated WACC is $15\%$ and

the dollar IRR is $76\%.$ What is the euro IRR?

a$)15\%$

b$)55\%$

c$)76\%$

d$)84\%$

e$)92\%$