AnAmerican firm isanalyzing a potential 3-year investment in France. It will require an investment of €2000 and is forecastedto yield cash flows of €2000 for the next 3 years. The spot is €1.2/$. The U.S inflation rate is 7%, the euro inflation rate is 10%. The American firm estimated WACCis 80% and the euroIRR is 83.93%. Should we invest in this project?
c.The investor should be indifferent
d.It is impossible to determine
a.Yes [ the euroIRR of the project is... View the full answer