Compute the au- denominated npv for this project

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Question: BHP Australia is considering an international investment opportunity in France, which will generate $160,000 in the first year, and - (100,000 in the second year with initial investment of E64,000. The current exchange rate is $1.60/E. Inflation in Australia is 6% and 2% in France. The appropriate cost of capital for BHP Australia for a domestic project of the similar risk is 8%. Compute the AU$- denominated NPV for this project by using Australian dollar cash flows method.

Reference no: EM133331785

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