Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134475561
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 23, Problem 5DC

Note that the free cash flows you calculated in Question 4 are in Australian dollars. Use Eq. 23.2 to determine the forward exchange rates for each of the five years of the project. Then use the forward rates to convert the cash flows to U.S. dollars.

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