- Considering An Expansion Of Their Product Line To Japan The After Tax Cash Flows For The Project Are An Outflow Of 250 1 (67.7 KiB) Viewed 41 times
considering an expansion of their product line to Japan. The after-tax cash flows for the project are an outflow of 250
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considering an expansion of their product line to Japan. The after-tax cash flows for the project are an outflow of 250
considering an expansion of their product line to Japan. The after-tax cash flows for the project are an outflow of 250 million yen at the inception of the project and inflows of 80 million yen in the next four periods with an inflow of 110 million yen in the fifth (and final) period. The firm's required rate of return is 10%. The current spot rate is ¥114/€, and the expected inflation rate in Japan is 4% per year and 3% per year in Europe. In yen, what is the NPV of the expansion project? (Answer in yen, rounded with no decimals.)