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A Russian company is planning to start a 10 year project in Italy . The Russian...

A Russian company is planning to start a 10 year project in Italy . The Russian company has a before tax MARR of 20% in Russia. It is expected that Italian Euro is going to be devalued by 2.2% per year against the Russian ruble whereas by today (time 0) 1 Euro is equal to 92 Russian rubles. The project is expected to have the following cash flow:

Year 0: an investment of -16.8Million Euro (negative), Year 1: an investment of -3.2Million Euro (negative), Years 2 to 10: 6.9Million Euro annual revenue (positive).


What is the PW of this project in Euro?

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Requirement 1 Statement of Net Present Value of Project Exchange Rate Russian rubles/Euro AMOUNT Amount in Millions Discount

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