Question: Question 2. (5 points) Determine the value the U.S. based MNC with the following free cash flow and exchange rate estimations. The MNC has operations
Question 2. (5 points) Determine the value the U.S. based MNC with the following free cash flow and exchange rate estimations. The MNC has operations in Bangladesh and India. 50 Year 1 Year 2 Year 3 Year 4 Year 5 Expected Exchange rates USD vs INR 52 54 56 58 USD vs BDT 80 78 76 74 72 Expected free cash flows (in millions) India in INR) 4000 4000 4000 4000 *40000 Bangladesh (in BDT) 8000 8000 8000 8000 *80000 USA (in USD) 200 200 300 500 *3000 The firm has an overall cost of capital of 8% *present values of all the Expected future free cash flows at time t-year 5
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