The elements of uncertainty in international business

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Reference no: EM132005928

1. The following are the cash flows of two projects: Year Project A Project B 0 $ (390 ) $ (390 ) 1 220 290 2 220 290 3 220 290 4 220 a. If the opportunity cost of capital is 12%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Which of these projects is worth pursuing? Project A Project B Both Neither

2. What are the elements of uncertainty in an international business and some ways an organization can protect itself (hedge) or take advantage of differences in corporate taxes and variable costs to minimize the impact of negative consequences of forecast or actual operations and protect the company's profits?

Reference no: EM132005928

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