You Are a U

question 82

Multiple Choice

You are a U.S.dollar based corporation with a project in Great Britain that will cost you £1,000,000.The project will provide free cash flow of £500,000 for the next 3 years.If the pound denominated discount rate for this project is 12% and the spot rate is .5600£/$,then what is the dollar denominated NPV for the project? Round to the nearest $10.

• A) $358,780
• B) $200,920
• C) $112,510
• D) none of the above

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Definitions:

Libertarian Republicans

A faction within the Republican Party that emphasizes individual liberties, free market principles, and a more limited government than traditionally advocated by the party.

Government Regulation

The establishment of rules by authorities governing behavior, activities, and standards for individuals and organizations, typically enforced by penalties.

Social Conservatives

A group within the conservative movement that emphasizes traditional values and social norms, often focusing on issues related to family, religion, and morality.

Democrats

Members of the Democratic Party, one of the two major political parties in the United States, traditionally supporting liberal policies.