Question: Suppose that Bosa Co- a U.S.based MNC. has been offered o project by the government of Grasi. The project lasts for a period of one
Suppose that Bosa Co- a U.S.based MNC. has been offered o project by the government of Grasi. The project lasts for a period of one year and wrould require a 1,000,000 Brazilian real (R) investment in the project immediatels. The spot nate of the real is currently s0.30, hovever Bosa forecarts that the real vill depreciate bo 50.20 by net yean In order to pay for the inibal lwestment, Bosa would need to berrovi dollars at an interert rate of 15.009 . The project is expected to generate cash flows of R1,400,000. Suppose that Bosa and the Erazlian govemrent decde to angape in a parallel loan, in which sach party aimutunequaly lans the other party a chitain amount to be ispaid at a rpecific bime in the future, Sugpese that Bosa wall loan the Brazlian govemment s300,000, which will be repa d with 15.909 Suppose that Bosa Co- a U.S.based MNC. has been offered o project by the government of Grasi. The project lasts for a period of one year and wrould require a 1,000,000 Brazilian real (R) investment in the project immediatels. The spot nate of the real is currently s0.30, hovever Bosa forecarts that the real vill depreciate bo 50.20 by net yean In order to pay for the inibal lwestment, Bosa would need to berrovi dollars at an interert rate of 15.009 . The project is expected to generate cash flows of R1,400,000. Suppose that Bosa and the Erazlian govemrent decde to angape in a parallel loan, in which sach party aimutunequaly lans the other party a chitain amount to be ispaid at a rpecific bime in the future, Sugpese that Bosa wall loan the Brazlian govemment s300,000, which will be repa d with 15.909
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