Question

The US based company is investing in a 2-year project in Europe. The initial investment
is €10,000. The expected cash inflow in the year one is €6,000 and in the year two is
€8,000. The risk-frco rate in US is 3% and Europe 2%. If the spot rate is $1.25/€ and the
required rate of return of the project is 14%, calculate the NPV of the project in dollars.
(A)The NPV of the project in dollars is $1,773.62
(B) The NPV of the project in dollars is 51,704.32
(O) The NPV of the project in dollars is $1.418.90.
(D)The NPV of the project in dollarg is $1,989 74​

Answer 1

Answer:

b is the correct answer my friend