pinneya
Dec 13, 2010, 07:37 AM
A U.S.-based firm is planning to make an investment in Europe. The firm estimates that the project will generate cash flows of 200,000 euros after one year. If the one-year forward exchange rate is $1.40/euro and the dollar cost of capital is 9%, what is the present value (PV) of the project cash cash flows?
A) $268,880
B) $232,981
C) $256,881
D) $245,198
A) $268,880
B) $232,981
C) $256,881
D) $245,198