Calculate the present value of the cash flows

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Question - A Nigerian company is considering investing in a project in Ghana. Current exchange rate for the Ghanaian cedy is #50 = C1. The discount rate for the project in Ghana 10%. The discount rate for similar projects in Nigeria is 8%. The project requires an initial investment of C100,000 and leads to cash inflow of C50,000 per annum for the next three years. Calculate the present value of the cash flows for the year of initial investment?

Reference no: EM132594037

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