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A project in France yields a series of Euro cash flows as the following: -600 200    500    300 0 1 2 3 The...

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Finance

A project in France yields a series of Euro cash flows as thefollowing:

-600200   500   300
0123

The exchange rate of Euro today is $1.25 per Euro. The inflationrate in the euro zone is ?€ = 3%, the inflation rate in dollars isp$ = 6%. The cost of capital in USD is 10%. Assume thatinternational fisher effect and purchasing power parity holds.

1. Please solve for the project IRR in Euros

2. Solve for the equivalent USD IRR.

3. Please solve for the project NPV in USD

4. Please solve for the project NPV in Euro

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A project in France yields a series of Euro cash flows as thefollowing:-600200   500   3000123The exchange rate of Euro today is $1.25 per Euro. The inflationrate in the euro zone is ?€ = 3%, the inflation rate in dollars isp$ = 6%. The cost of capital in USD is 10%. Assume thatinternational fisher effect and purchasing power parity holds.1. Please solve for the project IRR in Euros2. Solve for the equivalent USD IRR.3. Please solve for the project NPV in USD4. Please solve for the project NPV in Euro

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