Solution-Compute the npv of this expansion project

Compute the npv of this expansion project

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Reference no: EM13945170

Zimmer, a manufacturer of modular rooms, plans to expand its operations in Landshut, Germany. The expansion will cost $14.5 million and is expected to generate annual net cash flows of 2.15 million for a period of 12 years and then the operation will be sold for 1 million (net of taxes). The cost of capital for the project is 14%. Using a spot exchange rate of $1.25/ as the forecast FX rate for the euro for the term of the project, compute the NPV of this expansion project.

Reference no: EM13945170

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Compute the npv of this expansion project

Reference no: EM13945170

Reference no: EM13945170

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