Machintosh Outerwear of Canada is a large retailer of high quality outdoor recreation equipment, clothing, and accessories. They are considering opening three U.S. stores in Minneapolis, Spokane, and Seattle. The current cost of a new store in Canada is C$1,000,000 per year and expected construction costs in the U.S. are expected to increase at a rate of 15% per year. The U.S.stores will be built in one year, the current exchange rate is $1.02/C$, the forward rate is $1.04/C$. If the stores are built in one year and the firm has a required rate of return of 14%, what is the present value in Canadian dollars of building the new stores?

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The Answer of Machintosh Outerwear of Canada is a large retailer of high quality outdoor recreation equipment, clothing, and accessories. They are considering opening three U.S. stores in Minneapolis, Spokane, and Seattle. The current cost of a new store in Canada is C$1,000,000 per year and expected construction costs in the U.S. are expected to increase at a rate of 15% per year. The U.S.stores will be built in one year, the current exchange rate is $1.02/C$, the forward rate is $1.04/C$. If the stores are built in one year and the firm has a required rate of return of 14%, what is the present value in Canadian dollars of building the new stores?

Machintosh Outerwear of Canada Is a Large Retailer of High