[nai00]

for the NPV working, why do we have to separate the realisable value of 7500 to 5000 and 2500 and discounted factor the 5000 at the spot rate in year 3 ?

and can you also please explain this “As a result of the exchange rates on the initial fee being fixed at the year 0 spot rate, Buryecs Co has gained $5,000
million x (0·1430 – 0·1315) x 0·675 = €39 million”

thank you

[Author]

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