問題詳情

25 GE, a U.S. Corporation, is considering a new project located in GreatBritain. The expected free cash flows from the project are detailed below:


You know that the spot exchange rate is S = $1.37/8. In addition, the risk-free interest rate on dollars and pounds is 5.4% and 4.6% respectively.Assume that these markets are internationally integrated and theuncertainty in the free cash flow is not correlated with uncertainty in theexchange rate. You have determined that the dollar WACC for these cashflows is 10.2%.
 What is the U.S. dollar present value of the project?
(A) $14.6
(B)$29.1
(C)-$3.6
(D)-$9.4
(E) $6.3

參考答案

答案：[無官方正解]
難度：計算中-1
書單：沒有書單，新增