"> (Answered) Answer given please explain Initial cost= - 1,000 Euros CF in each of the following 3 years= + 10,000 Euros Euro interest rate= 5 percent , Pound - Tutorials Prime

## (Answered) Answer given please explain Initial cost= - 1,000 Euros CF in each of the following 3 years= + 10,000 Euros Euro interest rate= 5 percent , Pound

Answer given please explain Initial cost= - 1,000 Euros CF in each of the following 3 years= + 10,000 Euros Euro interest rate= 5 percent , Pound

Answer given please explainInitial cost= - 1,000 EurosCF in each of the following 3 years= + 10,000 EurosEuro interest rate= 5 percent , Pound interest rate= 7 percent, Spot Pound to Euro exchange rate at time 0= Pound 2/ Euro1. Suppose that beginning in year 1, there is a 10 percent chance each year the host government will seize the projectâ€™s assets. If the assets are not seized, you expect to receive the cash flows as stated above. If the assets are seized in a particular year, you expect to receive no repatriated funds thereafter. Assume the international parity conditions hold. What is VÂ£?*Â Â Â Â Â a.Â Â Â£42,431.492. Assume 50 percent of the projectâ€™s expected cash flows are retained in the host country until the project is three years old. The opportunity cost of these funds is iâ‚¬ = 5 percent, but these blocked funds earn no interest. What is the NPV of the opportunity cost from these blocked funds? *Â Â Â Â Â d.Â Â â‚¬658.68

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This question was answered on: Jan 02, 2020

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