Which project is the best option


Problem: Using the exchange rate $.90 peso for $1.00 U.S. dollar for Salsa which will be established in Mexico and using the exchange rate of $.10 for $1.00 U.S. dollar for Lyriks assuming it will be established in Jamaica, convert the cash flows each year and convert the salvage amount to the corresponding host country's currencies for each project and recalculate the NPV. Assume the initial investment remains in US dollars. Which project is the best option? (Chapter 1 page 15 has an example of project valuation)

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Finance Basics: Which project is the best option
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