Question 1

What is the dollar-denominated IRR?

Accepted Answer

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Question 2

Find the break-even price (in dollars) and break-even quantity for the U.S. project.

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The answer of Find the break-even price (in dollars) and...

Question 3

Find the euro-zone cost of capital to compute is the dollar-denominated NPV of this project.

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Question 4

What is the dollar-denominated IRR of this project?

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Question 5

Find the dollar cash flows to compute the dollar-denominated NPV of this project.

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Question 6

What is the euro-denominated IRR of this project?

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Question 7

What is the euro-denominated IRR of this project?

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Question 8

Find the dollar cash flows to compute the dollar-denominated NPV of this project.
Please note that your answer is worth ZERO POINTS if it does not contain currency symbols.

Accepted Answer

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Question 9

What is the NPV of the U.S.-based project to the Irish firm?

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Question 10

What is the dollar-denominated IRR of this project?

Accepted Answer

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Question 11

What is the euro-denominated IRR?

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Question 12

What is the dollar-denominated IRR of this project?

Accepted Answer

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Question 13

What is CF5 in dollars?

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Question 14

Find the ex post IRR in euro for the French firm if they undertake the project today and then the exchange rate falls to S₁(€|£) = €1.80 per £.

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Question 15

Find the dollar cash flows to compute the dollar-denominated NPV of this project.
Your answer is worth ZERO POINTS if it does not contain currency symbols such as $, £, €, ¥!

Accepted Answer

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Question 16

Find the ex post IRR in euro for the French firm if they undertake the project today and then the exchange rate rises to S₁(€|£) = €2.20 per £.

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Question 17

Find the euro-zone cost of capital to compute is the dollar-denominated NPV of this project.

Accepted Answer

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Question 18

Find the euro-zone cost of capital to compute is the dollar-denominated NPV of this project.

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Question 19

Repeat the above project analysis assuming that the Irish firm could replicate the project in Ireland. (i.e. cash flow out the project in Ireland and find break-even price (in €), quantity, NPV, IRR (in euro not dollars).

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Question 20

What is the euro-denominated IRR of this project?

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Quiz 18: International Capital Budgeting

What is the dollar-denominated IRR?

Find the break-even price (in dollars) and break-even quantity for the U.S. project.

Find the euro-zone cost of capital to compute is the dollar-denominated NPV of this project.

What is the dollar-denominated IRR of this project?

Find the dollar cash flows to compute the dollar-denominated NPV of this project.

What is the euro-denominated IRR of this project?

What is the euro-denominated IRR of this project?

Find the dollar cash flows to compute the dollar-denominated NPV of this project. Please note that your answer is worth ZERO POINTS if it does not contain currency symbols.

What is the NPV of the U.S.-based project to the Irish firm?

What is the dollar-denominated IRR of this project?

What is the euro-denominated IRR?

What is the dollar-denominated IRR of this project?

What is CF5 in dollars?

Find the ex post IRR in euro for the French firm if they undertake the project today and then the exchange rate falls to S1(€|£) = €1.80 per £.

Find the dollar cash flows to compute the dollar-denominated NPV of this project. Your answer is worth ZERO POINTS if it does not contain currency symbols such as $, £, €, ¥!

Find the ex post IRR in euro for the French firm if they undertake the project today and then the exchange rate rises to S1(€|£) = €2.20 per £.

Find the euro-zone cost of capital to compute is the dollar-denominated NPV of this project.

Find the euro-zone cost of capital to compute is the dollar-denominated NPV of this project.

Repeat the above project analysis assuming that the Irish firm could replicate the project in Ireland. (i.e. cash flow out the project in Ireland and find break-even price (in €), quantity, NPV, IRR (in euro not dollars).

What is the euro-denominated IRR of this project?

Find the ex post IRR in euro for the French firm if they undertake the project today and then the exchange rate falls to S₁(€|£) = €1.80 per £.

Find the ex post IRR in euro for the French firm if they undertake the project today and then the exchange rate rises to S₁(€|£) = €2.20 per £.