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You know that the spot exchange rate is S=$1.1806/E. In addition, the risk-free interest rate on dollars is 4.1% and the risk-free interest rate on
You know that the spot exchange rate is S=$1.1806/E. In addition, the risk-free interest rate on dollars is 4.1% and the risk-free interest rate on euros is 5.6%. What is the dollar present value of the project? Should Etemadi Amalgamated undertake the project? The dollar net present value of the project is $ million. (Round to three decimal places.) Should Etemadi Amalgamated undertake the project? (Enter all outflows of cash as negative numbers.) The forward rate for period 1 is $ E. (Round to five decimal places.)
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