A. Calculate the cost of capital, in Australia, for the project. B. Calculate the forward exchange rates,
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Question:
A. Calculate the cost of capital, in Australia, for the project.
B. Calculate the forward exchange rates, F1(AUD/Yen) through F3(AUD/Yen), for the years 1, 2, and 3 based on the spot rate and the interest rates given in the question. (round to 5 decimal places)
C. Calculate the AUD value of FCF for the years 0, 1, 2 and 3 and the terminal value using the forward rates calculated in (b).
D. What is the NPV of the project from XYZ’s perceptive (in AUD)? Should XYZ expand into the Asian market?
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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