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A U. S.-based MNC has just established a subsidiary in Algeria. Shortly after the plant was built, the MNC determines that its exchange rate forecasts, which had previously indicated a slight appreciation in the Algerian dinar, were probably false. Instead of a slight appreciation, the MNC now expects that the dinar will depreciate substantially due to political turmoil in Algeria. This new development would likely cause the MNC to its estimate of the previously computed net present value.
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A U. S.-based MNC has just established a subsidiary in Algeria. Shortly after the plant was built, t...
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