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You have an investment opportunity in Germany that requires an investment of $250,000 today and will produce a cash flow of euro208,650 in one year
You have an investment opportunity in Germany that requires an investment of $250,000 today and will produce a cash flow of euro208,650 in one year with no risk. Suppose the riskminusfree rate of interest in Germany is 6% and the current competitive exchange rate is euro0.78 to $1.00. What is the NPV of this project? Would you take the project? A. NPV = 0; No B. NPV = minus$2358; No C. NPV = $2358; Yes D. NPV = $13,650; Yes
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