The US based company is investing in a 2 year project in europe

Finance Sep 22, 2020

The US based company is investing in a 2 year project in europe . The initial investment is Euros 10000. The expected cash inflow in the year one is Euro 6000 and in year two is 8000 euros. The risk free rate in US is 3% and Europe is 2%. If the spot rate is $1.25 per Euro and the required rate of return of the project is 14 %, calculate the NPV of the project in dollars

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