(CHAPTER 21) There is a project in DreamLand that an American based company would like to invest in The project would require DDD702,000 as initial investment It is also estimated to generate cash inflows equal to DDD321,000 a year for the next 4 years After that, the project will be worthless The current spot exchange rate equals DDD1 $3 4567 The risk free rate in DreamLand is 3 , and it is 5 in the U S A The applicable rate of return for projects in DreamLand similar to this one is 12 Calculate the Net Present Value of this project in DreamLand's currency (i e , in DDD ) Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher Only round your final answer to TWO decimal places for example, 10,000 23 Do NOT use currency units in your answer

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Question: (CHAPTER 21) There is a project in DreamLand that an American-based company would like to invest in. The project would require DDD702,000 as initial investment.

(CHAPTER 21)

There is a project in DreamLand that an American-based company would like to invest in.

The project would require DDD702,000 as initial investment.
It is also estimated to generate cash inflows equal to DDD321,000 a year for the next 4 years.
After that, the project will be worthless.
The current spot exchange rate equals DDD1 = $3.4567.
The risk-free rate in DreamLand is 3%, and it is 5% in the U.S.A.
The applicable rate of return for projects in DreamLand similar to this one is 12%.

Calculate the Net Present Value of this project in DreamLand's currency (i.e., in "DDD").

Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, 10,000.23. Do NOT use "currency units" in your answer.

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