Sir i just wanted to check while calculating imported component for sencond year and so we r doing 7×22000×61.59×1.03 as per book.My question is by multiplying it by 1.03 are not we taking inflation twice as one we already did while calculating exchange rate which is 58.20×1.09/1.03.Thanks.
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dec 11 Tramont co
11y ago#1Although we are using the 3% twice, it is for two different reasons.
One is to estimate the cash flow. The other is to estimate the exchange rate.
Although here there is no choice but to use the same 3%, in real life it is really two separate things.
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