A Canadian firm is planning to make an investment in Europe.The firm estimates that the project will generate a single cash flow of 200,000 euros after one year.If the one year forward exchange rate is 1.34 CAD/EUR,and the Canadian cost of capital is 6%,what is the PV of the project cash flow?
A) $252,830
B) $158,209
C) $140,805
D) $188,679
E) $268,000
Correct Answer:
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