Average minimum value of the malaysian ringgit

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Reference no: EM132017051

Problem: Misrilou Corp is considering a project in Malaysia that is projected to produce after-tax cash flows of MYR 33 million for 4 years. In addition, Misrilou believes it will be able to sell the project to a Malaysian competitor for MYR 11 million at the end of 4 years. The project will be funded with US-supplied financing in the amount of USD 25 million at a weighted average cost of capital of 16.5%. What is the 4-year average MINIMUM value of the Malaysian Ringgit in USD necessary to warrant acceptance of the project?

Reference no: EM132017051

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