a. Describe in general terms how future appreciation of the euro will likely affect the value (from
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a. Describe in general terms how future appreciation of the euro will likely affect the value (from the parent’s perspective) of a project established in Germany today by a U.S.-based MNC. Will the sensitivity of the project value be affected by the percentage of earnings remitted to the parent each year?
b. Repeat this question, but assume the future depreciation of the euro.
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a Future appreciation of the euro would benefit the parent since the euro earnings would b...View the full answer
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