Compute the npv of ariel-mexico recycling equipment

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Compute the NPV of Ariel-Mexico's recycling equipment in pesos by discounting incremental peso cash flow at a peso discount rate. Use the Generalized Fisher Effect to estimate the peso discount rate. Translate the peso NPV into euros. Assume expected future inflation is 3% per year in France and 7% per year in Mexico.

Reference no: EM133120624

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