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Author Question: A U.S.-based firm is planning to make an investment in Europe. The firm estimates that the project ...  (Read 10 times)


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A U.S.-based firm is planning to make an investment in Europe.  The firm estimates that the project will generate cash flows of 100,000 euros after one year.  If the one-year forward exchange rate is $1.50/euro and the dollar cost of capital is 8%, what is the present value (PV) of the project cash flows?
◦ $145,349
◦ $137,287
◦ $132,675
◦ $138,889

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Marked as best answer by jho37 on Jul 9, 2019


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