Question: A U.S. - based firm is planning to make an investment in Europe. The firm estimates that the project will generate cash flows of 100.000

A U.S. - based firm is planning to make an investment

A U.S. - based firm is planning to make an investment in Europe. The firm estimates that the project will generate cash flows of 100.000 euros after one year. If the one - year forward exchange rate is $1.35/euro and the dollar cost of capital is 10%. what is the present value (PV) of the project cash flows? A. $122, 675 B. $127, 150 C. $128, 209 D. $122, 727

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