An investment in China yields these expected after-tax renminbi cash flows (in billions). year CF 0 -508 1 155 2 308 3 259 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 $ 0.17 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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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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An investment in China yields these expected after-tax renminbi cash flows (in billions). year CF 0 -508 1 155 2 308 3 259 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 $ 0.17 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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