Net present value method of capital budgeting

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1. Bank X quotes an ask of 0.33 USD/NZD, with a bid-ask spread of 1.1 %. Bank Y quotes an ask of 0.39 USD/NZD, with a bid-ask spread of 1.1 %. Given this information, what would be your profit if you use 1 million USD and execute one cycle of locational arbitrage?

2. What are the primary strengths and weaknesses of the Net Present Value method of capital budgeting?

3. Discuss the key advantages and disadvantages of organic expansion and each of the listed forms of business combination for an international expansion. Support your views with relevant examples.

Reference no: EM132010305

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