Two equivalent ways to calculate the NPV in dollars:
1) Forecast future exchange rates using ____ _____ ____, convert CFs to _____, take NPV using ______ 2) Or, we can use ____ _____ to calculate a _____MXN, then calculate an _____MXN, and then convert to dollars using the _____ ____ .
Under parity conditions, the two approaches are equivalent (you will get the same NPV regardless of which approach you use)!
