CF = -10mil; S0 = $1.25/SF ; i$ = 5%; iSF = 10%; CF1=CF2= SF7.5mil; Beta=1.0; Km-Kf = 10%; Kf = 3%
METHOD #2: 1) estimate foreign cost of capital, using one of the parity conditions and domestic cost of capital: ______ 2) Calculate the NPVSFr by discounting the SFr cash flows using the SFr cost of capital. Convert the NPVSFr to NPV$ using the spot exchange rate: ______
