4. Foreign project valuation Frank F.X. Gong, chief economist for China at J.P. Morgan has forecast that
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4. Foreign project valuation Frank F.X. Gong, chief economist for China at J.P. Morgan has forecast that the Yuan will rise to 7.2 Yuan/$ by the end of 2005 and to 7.74 Yuan/$ by the end of 2006.If the after-tax cashflows generated by the two-year, China based project are USD 12 billion at the end of 2005 and USD 14 billion at the end of 2006, and the Chinese cost of capital is 10%, what is the NPV of this project in CNY?
a)PV (Future cashflows) =
b)NPV (in CNY) =
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Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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