Acquire the production facility in uruguancy

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Reference no: EM132073492

PRS Group is considering purchasing a production facility in Uruguay. The operations of the facility are projected to produce operating cash flow of UYU 30 million for three years. PRS also projects it will be able to sell the facility for UYU 95 million at the end of three years.

The current spot rate of the Uruguayan Peso is USD .037/UYU and is expected to remain stable for the next thre years. PRS Group requires return of 22% on such international projects.

What is the most PRS Group would be willing to spread today- in USD - to acquire the production facility in Uruguancy

Reference no: EM132073492

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