spot rate = 1$/40DM
Inflation rate = 6% in France
Inflation rate = 3% in US
I want to invest in a project in France which will have an initial
cost of 90000 DM.
Expected nominal cashflows should be 70000 DM for two years.  No salvage value
The US discount rate is 6%.

1. What is the dollar amount of the expected return?
2. NPV of the project in dollars.  I an interested in the cashflows
for each year so could you show work please.

Here are my figures:
NPV = approx: $90 - $91 depending on how far you take the decimal in
your calculations.

I need this by tonight if possible.

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Request for Question Clarification by scriptor-ga on 02 Sep 2005 10:44 PDT

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Scriptor