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You have an investment opportunity in Germany that requires an investment of $1,450,000 today and will produce a cash flow of 1,250,650 in TWO years
You have an investment opportunity in Germany that requires an investment of $1,450,000 today and will produce a cash flow of 1,250,650 in TWO years with no risk. Suppose the risk-free rate of interest in Germany is 5% and the current competitive exchange rate is 0.75 to $1.00. What is the NPV of this project? Would you take the project?
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