Question: Answer the question below in detail please: Required: Given the above information, a . What is the NPV of this project in terms of dollars?
Answer the question below in detail please:
Required: Given the above information,
a What is the NPV of this project in terms of dollars? Should the facility be built or not?
b Assume that the US inflation rate is zero while that in Mexico is percent per year. In
light of this, what would be the NPV of the project if the real value of the peso remains
unchanged over the life of the project?
c Repeat part b if the real value of the peso appreciates at a rate of percent per year.
Discuss your results.
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