O Grades for Elijah Rogers x C Problem 5. over The Ne x C Problem 6. Your Firm ls x y E Problem Set 3 (Spring 2 x C Secure I https:// 22mFoio/edit docs.google.com Problem Set 3 (Spring 2017) tr File Edit View sert Format Tools Table Add-ons Help All changes saved in Drive Problem 6. Your firm is thinking of buying an office building in Bangkok, and selling it in one year. You plan to finance this using a two-year loan from a Chinese bank, in Chinese yuan. The interest rate on the loan is 7% per year. You believe that it is appropriate to use the interest rate on this loan as the discount rate for the project. There are no taxes involved in this transaction. You assemble some cash flow and exchange rate projections as follows: Year 0 Year 2 Purchase sale of office building (THB) 30 million 40 ml 30 THB per EUR 33 THB per EUR Expected Thai baht exchange rate 3.8 CNY per EUR Expected Chinese yuan exchange rate 4 CNY per EUR Your boss asks you to calculate the net present value (NPV) of this transaction. In order to present the analysis to the head office in Paris, the NPV needs to be calculated in EUR terms, a. Please calculate the net present value of the transaction above in EUR terms. Should you proceed with this project? A rogers agmal com a Share Comments Editing