YEAR O YEAR 1 YEAR 2 YEAR 3 YEAR 4 Total S$ cash flows remitted after withholding taxes S$7500000 S$7500000 S$7500000 S$7500000 Hedged S$ cash flows S$4800000 S$4800000 S$4000000 $$4000000 Unhedged S$...


YEAR O<br>YEAR 1<br>YEAR 2<br>YEAR 3<br>YEAR 4<br>Total S$ cash flows remitted after withholding taxes<br>S$7500000 S$7500000 S$7500000 S$7500000<br>Hedged S$ cash flows<br>S$4800000 S$4800000 S$4000000 $$4000000<br>Unhedged S$ cash flows<br>Salvage Value<br>Forward rate of S$<br>S$22000000<br>0.49<br>0.49<br>0.49<br>0.49<br>Expected Future Spot rate of S$<br>0.51<br>0.50<br>0.49<br>0.48<br>Hedged cash flows to parent<br>Unhedged cash flows to parent<br>Total cash flows to parent<br>Initial Investment by parent<br>$15,000,000<br>The above information is for a firm trying to hedge a portion of its expected cash inflows denominated in Singapore Dollars (S$).<br>What is the NPV if the discount rate is 14%<br>about $2.01 million<br>about $2.54 million<br>about $1.99 million<br>about $3.21 million<br>

Extracted text: YEAR O YEAR 1 YEAR 2 YEAR 3 YEAR 4 Total S$ cash flows remitted after withholding taxes S$7500000 S$7500000 S$7500000 S$7500000 Hedged S$ cash flows S$4800000 S$4800000 S$4000000 $$4000000 Unhedged S$ cash flows Salvage Value Forward rate of S$ S$22000000 0.49 0.49 0.49 0.49 Expected Future Spot rate of S$ 0.51 0.50 0.49 0.48 Hedged cash flows to parent Unhedged cash flows to parent Total cash flows to parent Initial Investment by parent $15,000,000 The above information is for a firm trying to hedge a portion of its expected cash inflows denominated in Singapore Dollars (S$). What is the NPV if the discount rate is 14% about $2.01 million about $2.54 million about $1.99 million about $3.21 million

Jun 04, 2022
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