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You are analyzing a potential 3-year investment in France. It will require an initial investment of 360,000.00 and is forecasted to yield cash flows
You are analyzing a potential 3-year investment in France. It will require an initial investment of 360,000.00 and is forecasted to yield cash flows of 360,000.00 for the next 3 years. As of today, the spot exchange rate is $0.7500 / and the rates of inflation expected to prevail for the next year in the US is 7% and in 6% in France. Your estimated cost of capital in dollars is 6.47%. What is the NPV in dollars? O $505,215.55 O None of the alternatives O $368,776.39 $458,776.39 O $611,701.85
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