An Australian Firm Is Evaluating a Proposal to Build a New

question 39

Multiple Choice

An Australian firm is evaluating a proposal to build a new plant in the United States. The expected cash flows in $US (in millions) are as follows: Year 0, −100; Year 1, 40; Year 2, 50; Year 3, 65. The discount rate in $A is 10 percent, while the discount rate in $US is 12 percent and the spot rate is $US0.60/$A. Calculate the NPV of the project in $US.

• A)+36.40
• B)−21.84
• C)+13.10
• D)+21.84

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Definitions:

Hormone System

Also known as the endocrine system, it's a network of glands and organs that produce, store, and secrete hormones to regulate the body's functions.

Brain Structure

The anatomical organization of the brain, including its parts and their connections, which underlie cognitive functions and behaviors.

Sleep Patterns

The cyclical nature of sleep and waking states that an individual exhibits, including duration, quality, and consistency of sleep.

Serotonin Level

The concentration of serotonin, a key neurotransmitter involved in regulating mood, appetite, and sleep, in the brain.