QUESTION 32 Consider the following international Investment opportunity. It involves a gold mine that can...
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QUESTION 32 Consider the following international Investment opportunity. It involves a gold mine that can be opened at a cost, then produces a positive cash flow, but then requires environmental clean-up. Year 0 Year 1 Year 2 64.000 160.000 100,000 The current exchange rate is $1.40 - 1.00. The Inflation rate in the U.S. ls 1 percent and in the euro zone 3 percent. The appropriate cost of capital to a U.S.-based firm for a domestic project of this risk is 7 percent. What is the dollar-denominated NPV of this project. -1,897.91 1,355.65 -1,811.16 None of the above
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