Business, 21.05.2021 17:20, Kassi07

You want to invest in a project in Wonderand. The project has an initial cost of W738,000 and is expected to produce cash inflows of W321,000 a year for 4 years. The project will be worthless after that. The expected inflation rate in Wonderland is 2.5% while it is 4.5% in the U. S. The applicable interest rate for a project like this in Wonderland is 13%. The current spot exchange rate is W1 = $2.3456. Required:
What is the Net Present Value of this project in Wonderland's currency (i. e., in "W")?

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You want to invest in a project in Wonderand. The project has an initial cost of W738,000 and is exp...