Question: Please show me how to do it with a financial calculator and NOT with excel. Calculate the APV for the following project in Guatemala. The
Please show me how to do it with a financial calculator and NOT with excel.
Calculate the APV for the following project in Guatemala. The project will have 10-
year life, and cost $10 million. If you finance with 100% equity, the US equity will have
a beta of 1.3, but you plan to use 50% local debt financing. The expected market return
in the US is 8%, the US risk-free rate is 2%, the local borrowing rate is 12%, and the
currency is expected to depreciate at 5% per year. The project will generate cash flows
of $2 million per year for the life of the project. You face a 21% tax rate.
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