Problem 8.30 – Anderson International Limited, Foreign Investment Project with Blocked Cash Flows
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Evaluate a foreign investment project with cash flows in a foreign currency that are subject to reinvestment restrictions (block cash flows) imposed by the government. Calculate the net present value (NPV) of the project, assuming a required return and reinvestment rate, and round the answer to 2 decimal places. Additionally, calculate the internal rate of return (IRR) of the project.
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