Click here to go to the answer ↓

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

jho37

  • Sr. Member
  • ****
  • Posts: 264
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

Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jho37 on Jul 9, 2019

SomethingSomething

  • Full Member
  • ***
  • Posts: 179
$138,889

 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.


Hey there, how can we help?

Homework Clinic is a free homework helpline for anyone who signs-up. All posted questions are reviewed and answered by dedicated volunteers (students and teachers) from around the globe.

▶️ Video: Premenstrual Syndrome

For a complete list of videos, visit our video library