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Compute the dollar-denominated npv of project

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Reference no: EM132999160

Following cash flows are related to a project in Euro-zone:

Year 0= -25000 Euro

Year 1= 60000 Euro

Year 2= -36000 Euro

The current exchange rate is $1.50 = €1.00. The inflation rate in the U.S. is 6 percent and in the euro zone 2 percent. The appropriate cost of capital to a U.S.-based firm for a domestic project of this risk is 9 percent.

Find the dollar cash flows to compute the dollar-denominated NPV of this project.

Reference no: EM132999160

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