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Question: 10 6 points an american firm can invest 10 million...

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10) [6 Points] An American firm can invest 10 million in its German subsidiary and receive a return of 4.3 million annually (each year) for 3 years. The spot rate is $1.5042/, the U.S. rate of inflation is expected to be 4% annually, and the German rate is expected to be 3% annually. If the appropriate risk-adjusted cost of capital in dollars (discount rate in U.S.) is 14%, does the project appear to have a positive NPV? How much is NPV? Would you adopt this project? Initial Investment Year 1 Year 2 Year 3 Cash flows S Cash Flows NPV Calculations Formulas: s(%) s(%) (1 + )--x100 s,(%)=Sg (%)(M); 1+rs.realー1+/s. P in al , s(%)☆s,4%)-s(%)는는 S,nominal 1 + Et

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