Free cash flows were estimated in Mexican Peso and the hurdle rate was given in Euro. You were asked to evaluate the replacement project in Mexico from the perspective of French investors in two different ways. In order to convert the cash flows to Euro, which parity conditions could you potentially apply?

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Groupe Ariel was a case of international capital budgeting. https://www.hbs.edu/faculty/Pages/item.aspx?num=39468 Groupe Ariel was a case of international capital budgeting. https://www.hbs.edu/faculty/Pages/item.aspx?num=39468

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To convert cash flows estimated in Mexican Peso to Euro for evaluation by French investors you would ... View the full answer