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Business, 19.05.2020 13:02 chloeann5397

You want to invest in a project in LaLaLand. The project has an initial cost of LLL 757,000 and is expected to produce cash inflows of LLL 396,000 a year for 3 years. The project will be worthless after that. The expected inflation rate in LaLaLand is 4% while it is only 3% in the U. S. The applicable interest rate for a project like this in LaLaLand is 12%. The current spot exchange rate is LLL1 = $2.3456.

What is the Net Present Value of this project in Lalaland's currency.(i. e., in "LLL")?

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You want to invest in a project in LaLaLand. The project has an initial cost of LLL 757,000 and is e...

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