Your company is looking at a new project in Mexico. The projectwill cost 1,000,000 pesos. The cash
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Your company is looking at a new project in Mexico. The projectwill cost 1,000,000 pesos. The cash flows are expected to be350,000 pesos per year for 5 years. The current spot exchange rateis 19.07 pesos per dollar. The risk-free rate in the US is 4%, andthe risk-free rate in Mexico 8%. The dollar required return is 10%.What is the net present value of this investment in U.S.Dollars?
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Financial Analysis with Microsoft Excel
ISBN: 978-1111826246
6th edition
Authors: Timothy R. Mayes, Todd M. Shank
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