XYZ Corporation (US firm) is evaluating a project with the

jagguarpaw January 18, 2017 0 Comments

Question: XYZ Corporation (US firm) is evaluating a project with the following expected

Use the following 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. Use the following 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.