Find the initial outlay in dollars for the project

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Reference no: EM132036473

Use the folllowing the answer the next two questions. XYZ corporation (US firm) is evaluating a project with the following expected cash flows and discount rate(K):

Year 0	Year 1	Year 2	Year 3	Year 4
		K= .10	K=.12	K=.15	K=.18
Dollars	-500,000	500,000	50,000	500,000	250,000
Yen	-1,000,000	2,500,000	500,000	500,000	-700,000
Pounds	-100,000	60,000	-10,000	-100,000	-200,000

Exchange rates over this four year period are as follows:

Exchange Rate	Year 0	Year 1	Year 2	Year 3	Year 4
Yen	.005USD/JY	.002USD/JY	.005USD/JY	.005USD/JY	.008USD/JY
Pounds	2.2 USD/BP	2 USD/BP	2.7 USD/BP	2.5 USD/BP	2.2 USD/BP

Find the initial outlay (year 0 cost) in dollars for the project. Round intermediate steps and your final answer to four decimals. Do not use the dollar sign when entering your answer.

Reference no: EM132036473

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