lakonishok equipment has an investment opportunity in europe. the project costs E15 million and is expected...

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lakonishok equipment has an investment opportunity in europe.the project costs E15 million and is expected to produce cash flowof E2.7 million in year 1. E3.3 million in year 2 and E3.8 millionin year 3. the current spot excahnge rate is $1.42/E; and thecurrent risk-free rate in the Unites States is 2.8 percent,compared to that in europe of 21 percent. the appropiate discountrate for the project is estimated to be 10 percent, the U.S cost ofcapital for the company. in addition the subsidiary can be sold arthe end of three years for an estimated E97 million. use the exactform of interest rate parity in calcularing the expected soptrates. what is the NVP of the project in U.S dollars?

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lakonishok equipment has an investment opportunity in europe.the project costs E15 million and is expected to produce cash flowof E2.7 million in year 1. E3.3 million in year 2 and E3.8 millionin year 3. the current spot excahnge rate is $1.42/E; and thecurrent risk-free rate in the Unites States is 2.8 percent,compared to that in europe of 21 percent. the appropiate discountrate for the project is estimated to be 10 percent, the U.S cost ofcapital for the company. in addition the subsidiary can be sold arthe end of three years for an estimated E97 million. use the exactform of interest rate parity in calcularing the expected soptrates. what is the NVP of the project in U.S dollars?