An investment in China yields these expected after-tax renminbi cash flows (in billions). year  CF 0     -495 1    146 2     297 3     246 You know the following financial variables Required Return US -15.00% Required Return China -11.745% Expected Inflation US- 6.0% Expected Inflation China- 3.0% Spot Rate- $ 0.14 Assume the international parity conditions hold. Calculate NPV by converting renminbi to dollars at expected future spot rates and discounting in dollars. (X.XXX)

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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An investment in China yields these expected after-tax renminbi cash flows (in billions).

year  CF

0     -495

1    146

2     297

3     246

You know the following financial variables

Required Return US -15.00%

Required Return China -11.745%

Expected Inflation US- 6.0%

Expected Inflation China- 3.0%

Spot Rate- $ 0.14

Assume the international parity conditions hold. Calculate NPV by converting renminbi to dollars at expected future spot rates and discounting in dollars. (X.XXX)

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